The Rand Originally posted by Eye Witness News, South Africa , ref link at end article
JOHANNESBURG – The rand has continued to gain ground against the dollar and pound, now dropping below the R18 level to sterling.
This is after falling below R14 to the dollar at around 4.30pm, reaching the strongest levels in months.
Investors are awaiting the outcomes of meetings by the US Fed and the bank of japan.
Around 4.30pm, the rand was 13.85 to the dollar, 17.96 to the pound and 15.48 to the euro.
Analysts say the individual meetings by the US Federal Reserve and Bank of Japan, both on policy, have caused general nervousness favouring emerging market currencies.
Both meetings will conclude tomorrow, with investors remaining cautious and waiting for the outcome of the two meetings.
Reports say the US Fed is not expected to raise rates but the Bank of Japan is contemplating decreasing rates.
Meanwhile, as the rand continues to strengthen, ratings agency Moody’s has more good news.
It has indicated that the probability of a credit downgrade for South Africa is less than 50 percent.
It says the country simply needs to continue with its economic policies and sees Finance Minister Pravin Gordhan staying in his position.
(Edited by Winnie Theletsane)