Money SA economy
The rand was a touch softer in quiet midday trade on Monday tracking the euro, as markets looked to make sense of a potential Greek-style debt crisis amid concerns over the economic stability of Hungary.
At 11.34am the rand was bid at R7.81 to the dollar, R9.34 to the euro and R11.27 to the pound. "We are very quiet at the moment, tracking the euro as markets try to make heads or tails about the situation in Europe," a local currency trader said.
Dow Jones Newswires reports that tumbling equity markets drove investors back into safe havens, much to the benefit of the dollar and the yen Monday.
The euro remains under heavy selling pressure, despite Hungary's denial that it faces a Greek-style debt crisis.
The new Hungarian government has pledged to meet its budget deficit target and described fears of debt repayment problems as "wildly exaggerated."
The whole Hungarian episode, in which a debt crisis warning from Budapest sent the euro reeling last Friday, appears to have been created largely for a domestic audience to help pave the way for austerity measures from the new administration.
