Trading Day – the Rand blows past R18 to the dollar in overnight trading

The Rand blows past R18 to the dollar in overnight trading, peaking at R18.10/$ this morning – while The British Pound has been especially punished for not following the 0.75% rate hike trend and is even worse off than the local currency.

South Africa gets an investment grade rating from the new Gauteng-based Sovereign Africa Ratings (SAR) agency, which received a license from the FSCA to operate as a sovereign credit rating agency in March of this year.

In other news, Gemfields Group released a trading statement for the half-year ended in June, expecting a massive increase in earnings.

Here is the biggest news of the day.

• The Rand blows past R18 to the dollar in overnight trading. The currency briefly broke through the R18/$ level on Friday night before closing slightly lower. When forex markets opened Sunday night, the Rand continued the weakening trend, peaking at R18.10/$ this morning. The Rand is not alone in this boat, with all major currencies weakening against the dollar. The British Pound has been especially punished for not following the 0.75% rate hike trend and is even worse off than the local currency, hitting a record low against the dollar. The Rand strengthened from R20/£ on Thursday to R19/£ this morning.
• South Africa gets an investment grade rating from a new Gauteng-based ratings agency. Sovereign Africa Ratings (SAR) received a license from the FSCA to operate as a sovereign credit ratings agency in March of this year. The new agency announced its rating for South Africa on Friday, awarding the country a BBB long-term and B+ short-term rating with a stable outlook. Its views of SA’s sovereign status contradict those of the big three ratings agencies, effectively issuing a challenge to the industry giants, who African countries have long criticized for their harsh handling of ratings and even potential bias against African economies.
• Gemfields Group expects a massive increase in earnings. The company released a trading statement for the half-year ended in June. They expect net profit after tax to increase from R346 million to R864 million. Earning per share (EPS) is expected to increase from R0.24 to R0.56.
• Ascendis Health CFO, Cheryl-Jane Kujenga, steps down at the end of September.
• Exor Capital LLP has acquired a 5.1% stake in Harmony Gold.