The rand hit a new all-time low on Friday, breaching the R19/$ mark as rating agency Fitch downgraded the country’s credit rating.
Fitch on Friday downgraded South Africa’s long term foreign currency debt from BB+ to BB with a negative outlook. This was attributed to a “lack of a clear path towards government debt stabilisation.”
“The negative outlook reflects the prospect of further significant upside pressure on government debt and additional downside risks associated with the global shock,” Fitch said.
The rand, which is slowly approaching the R20/$ mark, weakened nearly 3% on Friday to a low of R19.03 against the greenback.