Futures Market News
Rand's losses linked with worries about growth in Europe
Mar 02, 2012 10:37 AM
Friday saw losses for the value of the monetary unit of the nation hosting the largest economy in Africa amid concerns for growth and development in Europe, Bloomberg reports.
The South African rand is forecast to suffer the consequences of reduced exports to Europe, the country's largest trade partner. Though Friday's losses were large, the monetary unit has climbed about 1.4 percent this week, a third-straight climb during a period of five days.
"In the very near-term, we remain reluctant to continue selling dollars and believe that the market remains ripe for a correction," states an email penned by economist George Glynos with ETM Analytics to Bloomberg.
Friday's losses come two trading sessions after the rand increased to its top value since September, riding on the back of cheap loans and liquidity availed by the European Central Bank to regional banks suffering from damages inflicted by the sovereign debt crisis.
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