South Africa Rand Slumps to Record Low After Moody’s Cut to Junk

South African currency breaches 18 per dollar for first time
Barclays estimates that there could be $6 billion of outflows

South African 100 rand banknotes stand in this arranged photograph in Pretoria, South Africa, on Wednesday, Aug. 14, 2019. The rand ended a tumultuous week on a positive note, gaining against the dollar for a second day and heading for its first weekly advance in four as technical indicators suggested recent declines are overdone.Photographer: Waldo Swiegers/Bloomberg

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By Colleen Goko-Petzer

March 30, 2020 at 6:07 AM UTC

Updated on

March 30, 2020 at 11:11 AM UTC

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South Africa’s rand weakened to a record low, dollar bonds plunged and banking stocks dropped after the country lost its last investment-grade credit rating. Investors anticipate it may slide even deeper into junk as the spread of the coronavirus hammers the economy.