Rand has nowhere to hide as R20/$ level looms
Fitch maintains negative outlook after downgrade, implying the next move will be deeper into junk
The rand, one of the most volatile major currencies, was getting a beating that had traders eyeing R20/$ even before Fitch delivered the latest blow to SA. Traders are braced for more volatility in the coming week.
“It is pretty stretched right now and could be a lot more stretched, and there is nothing to prevent it from getting to R20/$,” Anchor Capital chief investment officer Nolan Wapenaar said before Fitch announced SA’s latest downgrade. “As long as we are locked up in our houses and for as long as the US is in recession, it’s going to be difficult for the rand to recover.”