for subscribers

Junk reprieve strengthens rand after GDP news hurts currency

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town – The quick succession of news that South Africa’s economy shrunk by 1.2% in the first quarter of 2016 followed by news that ratings agency Fitch had spared the country from junk status sent the rand on a quick roller-coaster ride.

“The GDP number was worse than expected with the usual suspects of mining and agriculture being the hardest hit,” explained currency expert Adam Phillips of Umkhulu Consulting. “I think we all felt the first quarter would be hard, but the figures are very poor.”

“Within minutes, Fitch kept our rating and stayed with stable rather than go to negative,” Phillips told Fin24.

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
17.63
(-0.14)
ZAR/GBP
23.01
(-0.05)
ZAR/EUR
20.78
(-0.04)
ZAR/AUD
12.62
(-0.03)
ZAR/JPY
0.17
(-0.02)
Gold
2034.21
(+0.05)
Silver
28.28
(+0.09)
Platinum
961.50
(+0.38)
Brent Crude
44.55
(-1.53)
Palladium
2166.01
(+0.63)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 929 votes
It depends on how the funds are used.
74% - 6240 votes
No. We should have gotten the loan elsewhere.
15% - 1284 votes
Vote