Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rand Gains to 5-Month High as Moody’s Says Vote Credit Positive

May 13 (Bloomberg) -- South Africa’s rand advanced to its strongest level in five months after Moody’s Investors Service said the African National Congress’ win in the May 7 election is credit positive. Bonds gained.

The victory ensures continuity in macroeconomic policy, according to an e-mailed statement from Moody’s. The ruling ANC won 62.2 percent, compared with 22.2 percent for the Democratic Alliance, the main opposition party.

Moody’s assessment “was obviously good for the rand and provided the impetus for the move,” Jim Bryson, head of foreign exchange trading at Rand Merchant Bank, said by phone from Johannesburg. The rand also benefited from improved sentiment toward emerging markets, he said. It was among eight of 24 currencies from developing nations that gained today, while the MSCI Emerging Markets Index of stocks climbed a second day.

The rand rallied as much as 0.6 percent to 10.2942 per dollar, the strongest level since Dec. 18. It traded at 10.3149 by 11:14 a.m. in Johannesburg. Yields on government bonds due Decemeber 2026 fell three basis points, or 0.03 percentage point, to 8.13 percent, the third drop in four days.

Moody’s rates South Africa at Baa1, the third-lowest investment level, with a negative outlook.

To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net

To contact the editors responsible for this story: Vernon Wessels at vwessels@bloomberg.net Emily Bowers, Nasreen Seria

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.