The rand has gained more than 1 as markets applaud the recent move of rating agency Standard and Poors to improve the nations credit grade outlook.
The ratings agency revised SAs outlook from stable to positive, citing the promises of the Government of National Unity to grow the economy and a surge in private investments.
S P has removed the large political risk component for SA, now that the GNU has proved stable, which has allowed the outlook to brighten, on the increased political stability, and so expected stronger investment and growth, Annabel Bishop, chief economist at Investec, said in a research note.
This week, local investors will pay attention to the Reserve Banks anticipated 25 basis point interest rate decrease and October inflation data.
The rand is currently trading at R17.94 to the US dollar.
