South African rand pulls back from rally as traders await S&P rating decision
- The rand traded at 17.1250 against the dollar , about 0.4% weaker than Thursday's close.
JOHANNESBURG: The rand pulled back from a rally that had lifted it to its strongest level in more than two years, as traders locked in profits on Friday and awaited S&P Global’s scheduled review of South Africa’s sovereign credit rating with caution.
At 0824 GMT, the rand traded at 17.1250 against the dollar , about 0.4% weaker than Thursday’s close.
South Africa was first downgraded to “junk status” in 2017, following the firing of respected finance minister, Pravin Gordhan, by former president Jacob Zuma and the ensuing policy instability.
The economic calendar next week will feature October consumer inflation figures and September retail sales data on Wednesday, followed by the central bank’s interest rate decision on Thursday.
On the Johannesburg Stock Exchange, the Top-40 index was last down 1.6%, also shedding some of its recent gains.
South Africa’s benchmark 2035 government bond weakened in early deals, as the yield rose 6 basis points to 8.655%.
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