Money SA economy
The rand tracked a weaker euro in morning play on Monday amid a cut in Ireland's credit rating.
At 08.59am local time the rand was bid at R7.64 to the dollar, R9.84 to the euro and R11.65 to the pound. The euro was bid at $1.2875 from $1.2899 overnight.
A trader said the local currency tracked a softer euro after Moody's cut Ireland's credit rating.
Dow Jones Newswires reported that Moody's Investor Services on Monday cut Ireland's credit rating, citing a rising debt burden, a weak growth outlook and the high cost of rebuilding a shattered banking system.
The ratings agency lowered Ireland's credit rating to Aa2 from Aa1, with a stable outlook, indicating that it is not likely to consider a further downgrade soon.
RMB analysts noted in a morning report that attention in the US this week will be focussed on Fed Chairman Bernanke's testimony to Congress on Wednesday.
"He's expected to sound cautious about the economy but not to signal further monetary easing. We expect to see much the same from our own Reserve Bank Governor i.e. no cut at Thursday's MPC meeting but voicing enough concerns to keep the betting going for a September cut.
"The big event of the week will come late Friday with the release of the EU stress tests. Similar tests in the US last May proved to be the turning point of the crisis but the market is unsure whether the EU tests will be credible or not," RMB analysts said.
