Rand Falls with Selling of High-Risk Assets

The South African rand dropped as the widening investigations about the activities of the Goldman Sachs Group Inc. caused the investors to sell their high-risk assets amid the growing confusion and distrust in the markets.

As more and more inquiries are made into the Goldman Sachs‘ activities the investors are becoming less inclined to risk and are beginning to sell the higher-risk assets. This trend has negative effect on the equities, the commodities and also the rand, which falls into the “high-risk assets” category.

U.S. regulators sued the Goldman Sachs, while German and U.K. regulators are investigating if they can take action against the Goldman too. The European Union is probing the Goldman to see whether it was involved in concealing the Greece’s budget deficit.

USD/ZAR traded at 7.4336 as of 21:20 GMT up from the opening level of 7.3900. EUR/ZAR traded near 10.0275, rising from the opening level of 9.9597.

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