South African Rand Drops on Civil Unrest in Egypt

The South African rand dropped today as the tensions in Egypt threaten to fuel unrest in other countries of the region, causing uncertainty and risk aversion sentiment.

The rand experienced the biggest drop among other emerging-market currencies after gunfire erupted as the supporters of the current president clashed with the protesters. The unrest spilled over to Yemen, where opposing groups, inspired by the example of Egypt and Tunisia, demand from President Ali Abdullah Saleh to resign office before the end of his term.

USD/ZAR advanced today for the third day, rising from 7.261 to 7.292 as of 10:30 GMT. Yesterday it jumped as high as 7.297, the highest level since September 2.

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