Tuesday, 11th November 2008 at 11:51 pm
Rand slides as outlook is downgraded

The rand lost ground today (Tuesday) after Standard & Poor’s joined the chorus of concerns about South Africa’s current account deficit in cutting its outlook to negative from stable. Announcing the outlook downgrade late on Tuesday, Standard & Poor’s credit analyst Remy Salters said: “The outlook revision reflects pressures on South Africa’s balance of payments, which increase the risk of further currency depreciation and a sharper-than-anticipated correction in the current account deficit, with attendant effects on prospects for trend growth and fiscal outturns.”

This news does not bode well the the South Africa economy. Any negative sentiment in the markets is not good. At 18:00 the rand was bid at R10.3010 to the dollar from a previous close of R10.0050. It was bid at R12.9416 to the euro from a previous R12.7555 and at R15.9119 against sterling from R15.6521 before.

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