Economics
Rand Falls as Moody’s Sounds Alarm on South African Economy
- Ratings company lowers South African economic-growth forecasts
- Government still has time to avert junk rating, analysts say
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South Africa’s rand weakened and bond yields rose after Moody’s Investors Service lowered its forecasts for economic growth, raising the risk the country may lose its last investment-level credit rating.
The rand declined as much as 0.7% to trade above 15 per dollar for the first time in a week. Yields on benchmark 2030 government bonds rose four basis points to 8.9%.