The prospect of two key euro zone leaders meeting Monday to defend the strength of the common currency of the European Union helped the South African rand end three consecutive days of losses, according to Bloomberg.
Chancellor Angela Merkel of Germany and President Nicolas Sarkozy of France, the region's respective biggest and second-biggest economic systems, are scheduled to convene for the first time this year and the meeting will be in Berlin. The monetary unit of the African continent's largest economic system is sensitive to euro zone happenings since the euro region is the top commerce and trade partner to South Africa.
"As it is, a poor growth prognosis out of India and disappointing Australian retail sales data have already dampened the mood, with the rand likely to come under some pressure," states an email from currency strategist Nomvuyo Guma of Standard Bank Group in Johannesburg to Bloomberg.
Monday also saw South Africa's 2017 bonds increase for a second-straight day as yields dropped two basis points to 7.53 percent.
The rand is projected to continue feeling the economic pinch wrought by the sovereign debt scourge, according to Reuters.
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