Money SA economy
The rand lost further ground in afternoon trade on Wednesday tracking a soft euro, after credit rating agency Moody's said it may downgrade Portugal's sovereign debt.
Markets reacted to concern that Greece's debt crisis is revealing signs of spreading across the eurozone, while violent protests hit the streets of Athens.
At 3.43pm the rand was bid at R7.64 to the dollar from R7.55 at its previous close. It was bid at R9.82 to the euro and R11.54 to the pound. The euro was bid at $1.2833 from $1.2965 previously.
A local trader said: "We are seeing some heavy trade as the rand continues to track the euro, which has dipped below 1.29 against the dollar. The rand should find support at 7.64-65 against the dollar; however this movement is entirely euro dependant."
One other trader said: "All eyes are on Greece and South Europe at the moment, it's pretty dire, and we are seeing risk aversion as a result. Moody's possible downgrade of Portugal has played a role, and so to have the riots in Greece."
Dow Jones Newswires reported that the euro tumbled to a 14-month low against the dollar Wednesday, extending earlier losses as news that Moody's Investors Service placed Portugal under review for a downgrade accentuated euro-zone sovereign debt fears.
The dollar, a main recipient of safe-haven flows, was higher against all major currencies Wednesday morning.
