South African rand firms on S&P outlook upgrade
JOHANNESBURG, Nov 18 (Reuters) -South Africa's rand gained on Monday, as markets welcomed rating agency S&P's decision to raise the country's credit rating outlook.
At 0747 GMT, the rand traded at 18.12 against the dollar ZAR=D3, 0.52% stronger than its previous close.
S&P revised South Africa's outlook to "positive" from "stable" on Friday, citing plans for accelerated economic reforms by the new coalition government and a pickup in private investments.
"The credit outlook boost may incentivise continued reforms and efforts by the government to solidify these gains, such as improvements in governance and infrastructure investments," said Andre Cilliers, currency strategist at TreasuryONE.
Local investor focus this week will be on October inflation figures and an interest rate decision by the South African Reserve Bank (SARB).
The SARB is expected to cut rates by 25 basis points on Thursday.
"While a rate cut would align with easing global monetary policies, the SARB is likely to maintain a cautious approach to ensure currency stability and control inflation expectations amid recent ZAR volatility," Cilliers added.
On the stock market, the Top-40 .JTOPI index was up 0.5%.
South Africa's benchmark 2030 government bond ZAR2030= was stronger in early deals, with the yield down 5.5 basis points to 9.095%.
Reporting by Bhargav Acharya; Editing by Mrigank Dhaniwala
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