Rand steady ahead of S&P rating update

The rand steadied against the US dollar early on Friday as investors held positions ahead of a Standard & Poor's credit rating update on Africa's most advanced economy later in the session.

At 08:07 the rand was trading at R12.3775/$, not far off its Thursday New York closing level of 12.3550.

"The headline event today is S&P’s rating review decision. We think it is extremely unlikely that they will change the rating or even the outlook," John Cairns of Rand Merchant Bank said in a note.

Standard & Poor's in December kept the rating at BBB-, the lowest investment level, with a stable outlook.

The rand has also been under pressure after data on Thursday showed that April factory output unexpectedly contracted. In fixed income, the yield for the 2026 benchmark was flat at 8.31%.