Rand strengthens after ratings agency announcements

The currency weakened after Fitch lowered its outlook to negative from stable but it has since recovered.

Picture: Supplied

JOHANNESBURG - The rand has strengthened to an almost three week high against the dollar, after the country avoided being downgraded by rating agencies Fitch and Moody’s on Friday.

The currency weakened after Fitch lowered its outlook to negative from stable but it has since recovered.

It is currently hovering around the 13.80 mark against the dollar.

The rand has firmed by about 2% against the dollar to trade below R14 for the first time since the surprise outcome of the US presidential election earlier this month.

The local currency is stronger due to a weaker dollar and the latest move by rating’s agency’s Fitch and Moody’s to affirm South Africa’s investment-grade credit ratings.

Fitch affirmed the country’s credit rating at one notch above junk status but lowered its outlook from stable to negative.

Moody's affirmed its rating at two notches above sub-investment grade.

The rating’s agencies have warned of political uncertainty as President Jacob Zuma, faces a vote of no confidence from some members of the ANC’s national executive committee.

Standard and Poors' review is expected later this week.

(Edited by Neo Koza)