South Africa's rand on backfoot as Greece woes hit EM - CNBC Africa

South Africa's rand on backfoot as Greece woes hit EM

Southern Africa

by Reuters 0

South Africa's rand on backfoot as Greece woes hit EM.

South Africa's rand slipped to near a one-week low early on Tuesday as the U.S. dollar recovered recent losses, boosted by market fears that Greece may default on its debt.

At 0617 GMT the rand had weakened 0.25 percent to 12.1750 per dollar, compared to an overnight close of 12.1450 in New York.

(READ MORE: S.Africa’s rand falls on weak China trade data)

Against the euro the local unit inched 0.06 percent weaker to 13.0329.

Worries over Greece's ability and will to pay back multi-million euro loans stemming from a 2008 bailout have spooked investor sentiment toward emerging market assets, keeping the rand and its peers under pressure despite China announcing further monetary easing moves on Sunday.

"The latest negative news from Greece is that the administration is forcing government entities to transfer cash to the central bank — a clear sign of a cash crunch," said currency trader Johan Cairns of Rand Merchant Bank.

Local government bonds were also weaker, with the benchmark instrument due in 2026 adding 2.5 basis points to 7.99 percent.

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