Rand on fragile ground ahead of ratings reviews

Johannesburg - The rand remained on fragile ground against the dollar on Wednesday, with scope to revisit the previous day's record lows as investors fretted about a possible credit rating downgrade for South African at the end of the week.

The JSE's Top 40 futures index was flat, pointing to a similar start for the local bourse.

By 08:52 the rand, which hit an all-time low of R14.4950/$ in the previous session, was trading at 14.4405, more or less where it ended on Tuesday.

Traders said investors were focused on Friday's reviews from Fitch, which rates South Africa at BBB with a negative outlook and warned of a possible downgrade in September, and from Standard & Poor's, which has it at BBB- with a stable outlook.

US jobs data also due out on Friday could add pressure on the rand if it hardens the case for interest rates in the world's biggest economy to start rising in December.

"The local unit tested technical resistance around 14.50/dollar (on Tuesday) and further losses seem unavoidable as we approach release of sovereign credit rating reviews and US non-farm payrolls data," NKC African Economics said in a note.

In fixed income, the yield for debt due in 2026 eased 4 basis points to 8.585%.