Worst Currency Lifts South African Exporters as Growth Slows
(Updates exchange rate in second paragraph.)
Dec. 29 (Bloomberg) -- The world’s biggest major-currency decline is benefiting South Africa’s largest companies as export earnings in dollars rise and commodity producers from AngloGold Ashanti Ltd. to Sasol Ltd. beat peers in the stock market.
The rand has fallen 19 percent this year to trade at 8.30 per dollar, the biggest slump among the 12 most-traded currencies tracked by Bloomberg, as Europe’s sovereign debt crisis led to a selloff in riskier assets. It may retreat 3.7 percent to 8.50 per dollar by the end of the first quarter, according to the median estimate of 25 analysts surveyed by Bloomberg.
South Africa’s Reserve Bank let the rand sink 15 percent against the dollar in the past four months after the currency’s advance to a four-year high in April led Trade & Industry Minister Rob Davies to say it was “overvalued’ and ‘‘debilitating’’ for manufacturers. Gold producer AngloGold Ashanti gained 8.3 percent since Sept. 1 as the rand’s drop increased the local-currency value of gold. Sasol shares rose to a 40 percent premium to the FTSE 350 Oil & Gas Producers index.