Rand tumbles as Fitch revises SA outlook
Johannesburg - The rand lost 1.5% against the US dollar in late trade on Friday, falling quickly after Fitch ratings agency revised the country’s outlook to negative from stable.
The rand dropped to R8.1680/$ just after the outlook announcement, which came a few minutes after reports emerged in Europe to suggest some eurozone countries might be downgraded later in the session - hitting risk appetite.
The local unit had closed at R8.05/$ in New York on Thursday.
What the heck for - we are not part of Europe? Are we being targeted because we have the guts to run a tight financial ship?
Obviously you have no understnnding of international economics and currency movements. South Africa is not "an island unto itself", we're part of a global economic system.
The SA rand is artificially being kept "strong" by the inflow of VERY short term capital. One wave, and you will see a flight of capital as this country has not yet seen. But I say again, this is nothing. The rand will collapse- thats coming, guarenteed.
Finally earning my salary in dollars has reaped rewards.
An exageration to describe a 1.5% drop as the Rand tumbling.
Aah, Fitch! The same experts who gave the worthless sub-prime loans "top rated" A ratings pre-2009! This shows the danger of one organization having too much power...