Home World South Africa News Rand weakens amidst coronavirus fight: Breaches R19/$1

Rand weakens amidst coronavirus fight: Breaches R19/$1

Rand exchange rate
South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko

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.

-Byo24

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