Fin24

Rand tumbles as Fitch revises SA outlook

2012-01-13 16:49

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.

Comments
  • Judith - 2012-01-13 17:15

    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?

      Jeffrey - 2012-01-13 17:24

      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.

      Met - 2012-01-13 17:58

      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.

  • GrootWitHaai - 2012-01-14 13:53

    Finally earning my salary in dollars has reaped rewards.

  • grant9 - 2012-01-14 15:52

    An exageration to describe a 1.5% drop as the Rand tumbling.

  • DiamondEagle - 2012-01-15 11:15

    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...

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