Johannesburg – The rand weakened in the midday session on
Monday after S&P became the second rating agency to downgrade SA in a
matter of weeks.
“The rand is weaker due to the downgrade towards the
weekend. In a way it was expected as it is a good confirmation of where we are
sitting at the moment. The strikes have had a big influence on the downgrade‚”
said Lynden Reabow‚ an FX Sales trader from PSG Prime.
At 11:32am on Monday‚ the rand was bid at R8.7381 to the
dollar from Friday’s close of R8.7275. It was bid at R11.3261 to the euro from
its previous close of R11.3433‚ and at R14.0461 against sterling from R14.0737
before.
The euro was bid at $1.2964 from Friday’s close of $1.2948.
“Bonds should see some selling as investors are cashing in
their rands and investing them off shore. This should see the rand weaken even
further‚” Reabow said.
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