Rand ends the week lower

The rand remained on the back foot on Friday afternoon as the euro succumbed one again to worries over the Greek debt situation.

At 3.50pm the rand was bid at R7.36 to the dollar, R9.96 to the euro and R11.37 to the pound. The euro was bid at $1.3510 from $1.3571 previously. A trader said the rand failed on the upside at R7.40/$ yesterday, and is now back in the mid R7.30/$s.

Global banking group Standard Chartered recently revised down its USD-ZAR forecasts, anticipating more ZAR strength.

Razia Khan, head of macroeconomics at Standard Chartered, says the view is premised on a number of factors. “Global growth is recovering, supporting risk appetite, although interest rates in major economies are likely to be kept at low levels for a long period.

In this environment, South Africa's yield advantage will support the rand. Commodity currencies are likely to appreciate.”

Dow Jones Newswires reported that the euro succumbed again Friday to worries over Greece as investors parsed statements from euro-zone finance ministers for details on how an aid package for Greece might be implemented.