The South African rand rallied more than 1% at the start of the current trading week after rating agencies maintained South Africa’s credit grade at the end of the last week.
Fitch Ratings and Moody’s Investors Service kept the sovereign credit rate above the junk level, but both services had a negative outlook. They cited political uncertainty among reasons for the pessimistic view. Yet for now, South Africa keeps its investment grade, and the rand rallied as a result, though the general weakness of the US dollar also helped the South African currency to rally against the greenback.
USD/ZAR dropped as much as 1.81% to 13.8553 as of 11:14 GMT today.
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