Rand weakens on Greek uncertainty

The rand weakened before noon on Tuesday as uncertainty in the eurozone added pressure to the euro‚ which the rand tracked softer.

“The rand is following the euro weaker today as uncertainty surrounds a new bailout for Greece. This is putting all emerging market currencies under pressure and is expected to remain this way for the time being‚” Vunani Capital global markets analyst Kuziva Muganiwa said.

Graphic: Renjith Krishnan.

At 12.06pm‚ the rand was bid at R8.7913 to the US dollar from Monday’s close of R8.7483. The local currency was bid at R11.1396 to the euro from its previous close of R11.1108 and at R13.9663 against sterling from R13.8792 before.

The euro was bid at $1.2673 from Monday’s close of $1.2707.

“The rand has come under pressure today as the yield on local government bonds remained unchanged‚” Muganiwa said. - I-Net Bridge