The South African rand fell today as the delay of a bailout for Greece sparked risk aversion on the Forex market. The currency stayed weak after nation’s inflation unexpectedly accelerated.
South Africa inflation rose from 5.5 percent in September to 5.6 percent in October. Analysts have expected a drop to 5.4 percent. According to some economists, it is likely that the inflation rate will continue to increase further.
Worries about an aid for Greece that was postponed were hurting risky currencies, including the rand. About a fifth of South Africa’s exports goes to Europe and the problems of the eurozone are negative for the country’s economy.
USD/ZAR rose from 8.9528 to 8.9650 as of 2:04 GMT today and its daily maximum was at 8.9763. EUR/ZAR was up from the opening of 11.4829 to 11.5103, but down from the high of 11.5465.
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