Money SA economy
The rand tracked the euro in the morning session on Monday amid further speculation that a Greek bailout was imminent.
At 09.06am the rand was bid at R7.67 to the euro from R7.68 at its previous close. It was bid at R10.45 to the euro and R11.61 to the pound. The euro was bid at $1.3596 from $1.3638 previously.
A local currency trader said: "The rand is weaker from its high of 7.64 against the dollar, but that is the mark we are targeting.
"Again there is talk that a bailout in Greece is going to happen soon."
RMB analysts said in their morning report that Greece continues to be the focus of attention and so the driver of the rand and all global markets. "For no obvious reason, there is now hope that the announcement of the long awaited EU bailout plan is imminent.
More realistically, the Greek government looks very likely to announce a new fiscal austerity plan this week. If this is taken well by the markets then they could follow up immediately with a debt issuance, in turn taking some pressure off their cash constraints," RMB analysts John Cairns and Nema Ramkhelawan said.
Dow Jones Newswires reports the dollar rebounded against the yen and the euro in Asia on Monday as investors bought back the US unit following its falls late last week, but the recovery could be short-lived.
