ZAR the outperformer early this week, after....>

RAND: ZAR the outperformer early this week, after South Africa escaped a ratings

downgrade at Moody's on Friday (its last remaining "investment grade" rating),

although the ratings agency did change the country's outlook to negative, from

stable, as it affirmed its Baa3 rating.

- It does seem like Moody's has placed South Africa well & truly in the "last

chance saloon," as it noted that the "decision to change the outlook to negative

from stable reflects the material risk that the government will not succeed in

arresting the deterioration of its finances through a revival in economic growth

and fiscal consolidation measures. The challenges the government faces are

evident in the continued deterioration in South Africa's trend in growth and

public debt burden, despite ongoing policy responses."

- USD/ZAR last at session lows of ZAR14.8538, 1800 pips or so lower on the day.