Money SA economy
The South African rand traded towards the top end of its range in the afternoon session on Wednesday tracking the euro, which hit a 10-month low against the dollar.
At 3.40pm the rand was bid at R7.38 to the dollar, R9.87 to the euro and R10.99 to the pound. The euro was bid at $1.3341 from $1.3468 previously.
A local currency trader said: "We saw euro weakness which led to a softer rand, still holding within the 7.31-7.41 range against the dollar, but towards the topside. A downgrade by Fitch on Portugal led to initial euro weakness."
Dow Jones Newswires reported that euro dropped sharply against its major competitors Wednesday, hitting a fresh 10-month low against the dollar, as issues of sovereign debt in Greece and Portugal again reared their heads to rattle investors.
The International Monetary Fund could now lead a rescue package for debt-strapped Greece, according to reports, after euro-zone leaders had earlier insisted on an in-house solution, batting away suggestions of IMF involvement.
Fitch Ratings added to the euro's woes, downgrading Portugal's credit rating by one notch and issuing a negative outlook for the euro-zone nation that is also struggling with massive deficits and unimpressive growth prospects.
