South Africa's Rand Plunges as Moody's Warns on Fiscal Deficit

© Bloomberg. A customer hands over a five rand coin at a ‘spaza’ store on a sidewalk in the Sandton district of Johannesburg, South Africa, on Thursday, June 22, 2017. South Africa’s inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015.

(Bloomberg) — South Africa’s rand plunged against the dollar after Moody’s Investors Service said the pace of fiscal consolidation will be slower than government forecasts as weaker-than-expected economic growth and a rising public sector wage bill act as fiscal headwinds.

The rand declined 3 percent to 14.6698 per dollar by 12:46 p.m. in Johannesburg, bringing its loss this month to 9.5 percent, the most after Turkey’s lira among 24 emerging-market currencies tracked by Bloomberg.

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