Fin24

Rand weakens on Greek fears

2012-11-12 18:15

Johannesburg – The rand weakened on Monday afternoon‚ tracking the euro as uncertainty about the Greek bailout added pressure to the quiet trading environment.

“The rand is stuck in a very tight range due to the US holiday. No one is doing anything at the moment as they are waiting for the outcome of the Greek bailout decision. The German finance ministry said today it was not yet a suitable time to give an answer on the matter; they have not said when they would give a decision‚” said Mark Kalkwarf‚ a senior portfolio manager from the Iquad Group.

At 15:46‚ the rand was bid at R8.7138/$ from Friday’s close of R8.6935. The local currency was bid at R11.0903 to the euro from its previous close of R11.0676 and at R13.8252 against sterling from R13.8327 before.

The euro was bid at $1.2724 from Friday’s close of $1.2722.

“There was some good news for the South African markets: Foreigners bought over R2bn worth of equities last week which indicates they could be coming back in the South African market‚” Kalkwarf said.