Money SA economy
The South African rand was weaker in early trade, amid further pressure on the euro and some risk aversion.
On Friday the Dow fell sharply on news that the U.S. Securities and Exchange Commission, in a civil suit, accused Goldman Sachs of "defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter." The news was a major blow to financial stocks and the Dow ended over 1% lower on Friday.
At 8.47am the rand was bid at R7.44 to the dollar from R7.38 at its previous close. It was bid at R10.00 to the euro and R11.3105 to the pound. The euro was bid at $1.3449 from $1.3489 previously.
A local trader said all eyes are on the weaker euro and global stock markets.
"If the Goldman story continues, then the fallout will affect the Dow, emerging markets and the rand. But if it all calms down then 7.50 should be the high for the rand and then we should start to drift back. So all eyes will be on the stock markets and particularly the Dow tonight," he said.
RMB analysts said in their morning report that the mood towards the rand seems to be turning and last week's continued losses seem to have encouraged the view that the trend is now for ongoing weakness.
