Shares on the Johannesburg Stock Exchange were little changed, with the Top-40 index down 0.03% and the broader all-share index closing 0.1% lower. Analysts said the markets had already priced in S&P's downgrade. The downgrade followed disappointing gross domestic product data released earlier this week, which showed South Africa's economy contracted more than expected in the last quarter of 2022 and could be on track for a recession if it shrinks again this quarter. The government's benchmark 2030 bond was weaker, with the yield up 3 basis points to 10.195%. (Reporting by Nellie Peyton and Tannur Anders Editing by Bhargav Acharya and Mark Potter)
(Updates prices to reflect afternoon trade)
JOHANNESBURG, March 9 (Reuters) - The South African rand
strengthened on Thursday, recovering from an almost three-year
low hit the day before when S&P Global downgraded South Africa's
outlook to "stable" from "positive".
At 1545 GMT, the rand traded at 18.5700 to the
dollar, 0.34% stronger than its previous close. On Wednesday it
hit 18.7200, its weakest in almost three years.
The dollar was down about 0.4% against a basket of
major currencies, after reaching a 2023 high on Wednesday
following hawkish comments by U.S. Federal Reserve Chair Jerome
Powell.
Global investors will now be looking at U.S. jobs data due
on Friday for confirmation that a strong labour market supports
more interest rate increases.
"After January's stellar jobs numbers, tomorrow's release
could either add to the hawkish rhetoric or not. Anything in
line or above forecasts could add to the rand's woes possibly
surpassing yesterday's high (for the dollar) of 18.72," said IG
analyst Warren Venketas.
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