The South African rand gained today as South Africa may avoid credit rating downgrade from rating agencies by decreasing its budget deficit faster than was previously estimated.
South Africa’s Finance Minister Pravin Gordhan said yesterday that Moodyâs Investors Service and Fitch Ratings may improve outlook for the nation’s debt. Gordhan said that the country is doing enough for the rating agencies to be able to change the outlook to stable from negative. The Finance Minister said that the target for budget shortage is 4.6 percent of gross domestic product, compared to the October forecast of 5.2 percent.
USD/ZAR fell from 7.7190 to 7.6830 as of 11:55 GMT today, while the daily low was 7.6590.
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