Johannesburg - The rand lost ground on Tuesday morning as ratings agency Moody’s released a report criticising the Mining Charter. Moody's joined Fitch Ratings in slating the controversial charter as harmful to the South African economy.
Moody's said the document is not properly drafted and believes the ANC is likely to ask for it to be withdrawn. The rand jumped from R13.03 to R13.13 instantly on the news, before easing to R13.08 by 11:00, a 0.14% drop in the price since Tuesday.
South Africa's consumer price index for May came out at 5.4%, within the target band of between 3% to 6%. But analysts attributed the rand’s jump to Moody's comments.