Money SA economy
The rand tracked a resurgent euro in midday trade on Monday following the news of a European Union emergency package for Greece, and plans to prevent the debt crisis from spreading to member countries.
The local currency has regained as much as 40 cents against the dollar from its worst levels on Friday. At 11.34am the rand was bid at R7.48 to the dollar, R9.73 to the euro and R11.16 to the pound. The euro was bid at $1.3059 from $1.2989 previously.
A local trader said: "The rand's strength is on the back of a euro rally following news of a support package for Greece. We should find support at R7.42/$, with the range larger than it has been, amid market volatility."
Meanwhile, Dow Jones Newswires reports that the three-part international effort to stave off a debt crisis in the euro zone sent the euro sharply higher on Monday.
The pound was also finding support, not only from the general improvement in global sentiment but from signs that the Conservatives and Liberal Democrats are edging closer to a coalition deal that could see David Cameron as prime minister before the end of the day.
The unexpectedly large size of the European Union emergency package and the joint efforts with the European Central Bank and the International Monetary Fund helped to lift hopes that immediate threats to the single currency have been removed.
