Economics
Rand Sinks as a Downbeat Moody's, Naspers Spur a Perfect Storm
- Currency falls as much as 3.4%, the most among emerging peers
- Moody’s warns on debt; Kganyago says economy ‘worrying’
A customer hands over a five rand coin at a store in Johannesburg.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
South Africa’s rand was battered by headwinds including a downbeat assessment of the economy by Moody’s Investors Service and a plunge in the biggest company on the Johannesburg Stock Exchange.
The currency sank as much as 3.4 percent against the dollar after Moody’s said the pace of South Africa’s fiscal consolidation will be slower than government forecasts due to weaker-than-expected economic growth and a rising public sector wage bill. The statement came shortly after central bank Governor Lesetja Kganyago said growth projections were “worrying,” and hinted policy makers aren’t about to raise rates.