Moribund EU economy continues to hit rand
Johannesburg – The uncertainty over the moribund eurozone economy continued to put pressure on the rand in afternoon trade. The local currency was weaker on depressed global cues‚ tracking the euro‚ and awaiting developments from Europe.
“The rand has been on the back-foot since last week‚ maintaining a weaker bias. It is governed by international developments at the moment‚ being driven by what is coming out of Europe. We’ll also be watching the Fed and Chinese GDP later in the week‚” Michael Keenan of Absa Capital said.
At 15:54 the rand was bid at R8.2855 to the dollar from its previous close of R8.2363 and Thursday’s close of R8.1347. It was bid at R10.1764 to the euro from its previous close of R10.1306 and at R12.8397 against sterling from R12.7729 before.
The euro was bid at $1.2291 from its previous close of $1.2278.
Meanwhile‚ Dow Jones Newswires reported on Monday that the eurozone debt crisis continued to weigh on the outlook for the UK economy as business confidence slumped in June and recruitment firms reported a fall in the number of job placements made‚ a collection of business surveys showed on Monday.