At 15h24 CAT, the Rand traded at 17.0775 against the United States Dollar, at the same level as Friday’s close, as traders shrugged off S&P Global’s first credit upgrade of SA in nearly 20 years.
“The muted reaction reflects that the move was largely priced in, though the upgrade, combined with Treasury’s backing of a 3% inflation target, supports SA’s longer-term risk profile,” said Wichard Cilliers, Head of Market Risk at TreasuryONE, in a note.
This week’s economic calendar will feature October consumer inflation figures and September retail sales data on Wednesday, followed by the central bank’s interest rate decision on Thursday.
Economists polled by Reuters expect that the Monetary Policy Committee will cut its main lending rate by 25 basis points to 6.75%.
On the Johannesburg Stock Exchange, the Top-40 index was flat though the benchmark 2035 government bond was firmer, with the yield falling 4 basis points to 8.615%.
–Reuters–
