MARKET WRAP: Rand weakens after SA ends final day in the WGBI

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The rand has gained about 4% against the dollar for the week

Despite being weaker on Thursday the rand gained about 4% against the dollar this week, which saw SA fall out of the World Government Bond Index on Thursday, and S&P Global Ratings drop the country another rung into junk status late on Wednesday.

In late March, Moody’s Investors Service became the last of the major ratings agencies to remove the country’s investment-grade status. However, many analysts believe that the move has been largely priced into the local currency and bonds.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

 

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