And the shenanigans of our politicians in Parliament is also not helping.
By noon on Thursday (5 May, 2016) the rand dragged to R14.97 against the dollar, a long way off its five-month high of 14.1165 reached last Friday. It the same time it traded at R21.68 against the British pound, and at R17.12 versus the Euro.
News agency Reurters said. “ZAR breached 15.0000/dollar for first time in more than 3 weeks during New York trade, but managed to overturn some losses thereafter. Relief rally has hit speed bump and if US jobs data beat expectations tomorrow local unit might be in for more pain.”
Business Tech said the Reserve Bank warned earlier this week that South Africa faces a medium to high probability of a downgrade to non-investment status. At the moment Moody’s is rating SA only two notches above “junk” status.
Bloomberg says South Africa risks losing its investment-grade status with S&P Global Ratings due to review its BBB- assessment this coming June.
