MARKET WRAP: Rand weakens after SA ends final day in the WGBI

Despite being weaker on Thursday the rand gained about 4% against the dollar this week, which saw SA fall out of the World Government Bond Index (WGBI) on Thursday, and S&P Global Ratings drop the country another rung into junk status late on Wednesday.

In late March, Moody’s Investors Service became the last of the major ratings agencies to remove the country’s investment-grade status. However, many analysts believe that the move has been largely priced into the local currency and bonds.