Johannesburg - The rand and government bonds extended losses on Wednesday following political tensions that led to the country’s debt being downgraded to junk status by S&P Global Ratings earlier in the week.
At 5pm, the rand was bid at R13.774 to the dollar, 24.48c softer than same time on Tuesday.
“With ministers in and out, that does not bode well with international investors. So naturally, they would sell off our currency out of fear and concern,” Afrifocus Securities markets analyst, Cheslyn Francis, said.
The country has been in the grip of a political storm after President Jacob Zuma’s controversial cabinet reshuffle triggered a downgrade that rocked markets.
In fixed income, the yield for the benchmark government bond due in 2026 rose.