The South African rand held steady on Friday as investors remained cautious ahead of a Moody’s sovereign credit rating review expected later in the day.
By 1656 GMT, the currency was trading at 16.9650 per dollar, little changed from its closing level on Thursday and maintaining its position below the 17.00 mark, as seen on Reuters.
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Local market participants are closely watching the review, with most anticipating Moody’s will revise its outlook on South Africa’s credit rating to positive from stable.
The rand has also drawn support from the government’s recently issued dollar-denominated eurobonds.
Central bank data released on Friday showed that South Africa’s net foreign reserves increased to $70.024 billion at the end of November, up from $69.364 billion in October.
On the Johannesburg Stock Exchange, the Top-40 index closed 1.6% higher, while the benchmark 2035 government bond strengthened slightly, with its yield edging down one basis point to 8.315%.
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Image Credit: Reuters
