1Finance

Rand Exchange Rate Trending at 11-Week Low vs GBP, USD and the EUR on Credit Rating Expectations.



Expectations that top ratings agency Fitch would downgrade South Africa’s credit rating placed the Rand exchange rate under heavy pressure on Friday, despite some analysts asserting that the institution is more likely to affirm the nation’s BBB sovereign credit rating and negative outlook.

According to one industry expert; ‘While there is a significant chance that Fitch Ratings will downgrade SA’s rating on Friday, it is “marginally more likely than not” that the agency will affirm the rating. Fitch is the only agency of the three major ratings agencies to have a negative outlook on its rating. Standard & Poor’s (S&P) and Moody’s have stable outlooks. While a negative outlook does not always mean ratings will be downgraded, it does mean that the probability of such happening is higher than when the outlook is stable.’

A quick foreign exchange market summary before we bring you the rest of the report:

• The Pound to South African Rand exchange rate: GBP/ZAR converts at 19.214.
• The South African Rand to Pound exchange rate today is converting at 0.052 ZAR/GBP.
• The South African Rand to Euro exchange rate: ZAR/EUR conversion is 0.072.
• The South African Rand to US Dollar exchange rate converts at 1 ZAR is 0.08 USD.

the source