Rand Traders on Edge as Moody’s Puts Debt in Last-Chance Saloon
- Moody’s decision not to cut South Africa may boost rand Monday
- Bank of America expects the nation to be cut to junk next year
South Africans celebrate after winning the Rugby World Cup 2019 Final.
Photographer: Phill Magakoe/AFP via Getty Images
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South African traders waking from their Rugby World Cup party hangover may have another headache to confront: whether to see the Moody’s decision not to cut the country’s credit rating as a trigger to buy or sell the rand.
If you listen to Societe Generale SA, the currency that weakened more than any of its emerging-market peers last week may rally on relief that Africa’s most developed country has retained its last investment-grade rating.