Money SA economy
The rand was a tad softer in morning play on Monday, but held up well against both the greenback and single currency amid a slump on Wall Street on Friday, and concerns over the Hungarian economy.
At 09.12am the rand was bid at R7.79 to the dollar, R9.31 to the euro and R11.22 to the pound. The euro was bid at $1.1937, the same as its close previously.
A local trader said: "The rand is performing quite well with the euro/rand at the 9.30 level while the world falls apart again. Stocks fell on Friday, US jobs data came in worse than expected and news out of Hungary have all contributed to a negative undertone, but the rand remains at 7.77-7.88 against the dollar."
RMB analysts said in their morning report that the euro/US dollar broke ranks on Friday falling to a four-year low as investors retreated to safe-haven assets following a dreary US labour report, "a rather divisive meeting of G20 finance ministers and murmurings about the emergence of a "Greek-style" crisis in Hungary.
"Having barely come to terms with Greece's indiscretions, markets are now faced with the possibility of a Hungarian default after government officials alluded to severe structural imbalances within the Hungarian economy.
"The government has failed to justify its comments, leaving markets in disarray.”
Other traders and analysts agreed that the euro would likely fall further this week.
