S. African rand edges lower after 2% drop on poor PMI data, U.S. downgrade.

The South African rand edged lower in early trade, after tumbling as much as 2% on Tuesday. This as risk-off sentiment increased on concerns about global economic growth and a credit rating agency downgraded the U.S. This morning the rand traded at 18.3475 against the dollar , about 0.2% weaker than its previous close. Reuters reports that the dollar last traded at 102.20, around 0.2% stronger against a basket of global currencies, recovering some losses it incurred after rating agency Fitch in a surprise move downgraded the U.S. to AA+ from AAA.