Rand weakens as Greek debt cri

Rand weakens as Greek debt crisis worsens

The spotlight is on Greece this week as it heads for debt default and a possible exit from the Eurozone.

Rand weakens as Greek debt cri

The European Central Bank stated on Sunday that it would not increase its financial support to Greek banks, which has led to a dramatic escalation in the country’s debt crisis. As it is one of South Africa’s major trading currencies, volatility in the Euro has a direct effect on Rand stability.

The energy department has announced new fuel prices for July. This is likely to feed into the notion of higher inflation risk and cause further weakening for the Rand.
The Pound has pushed higher and higher against the Rand in 2015 and many reports suggest that the rate may hit the 20.00 mark, based on the momentum of recent rate movements. Should the SARB decide on an interest rate hike, the Rand could slightly reverse its latest decline.
What to look for this week?
There is plenty of data coming from Germany and around the general Eurozone area that will affect the Rand’s standing against all the major currencies. ZAR Consumer Confidence data will be released on Thursday this week and may indicate where the Rand is heading.

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