South Africa’s rand weakened on Monday as the euro zone crisis deepened after Greek voters rejected terms of a rescue package, sending investors into safer havens and hitting sentiment for emerging market currencies.
At 0610 GMT, the rand was almost half a percent weaker against the greenback at 12.3475, compared with Friday’s close in New York of 12.3005 per dollar.
“The rand has kicked weaker in reaction to the Greek “nai” vote, but the worst may already be past,” said Rand Merchant Bank in a note to clients.
“Greece will continue to dominate the news and expect ongoing volatility in the euro to spill over into the rand.”
The euro zone is South Africa’s largest export destination and the rand often tracks Europe’s single currency.
The latest reports from Greece said around 61 percent of those voting in the referendum had backed the government and rejected the bailout conditions.
Government bonds were firmer, with the yield on the benchmark 2026 bond up a basis point to 8.260 percent.