Tuesday saw the monetary unit of the largest economic system on the African continent slip to the U.S. dollar after preoccupations that Greek suffering will not end with the Aegean nation being awarded its second bailout since June 2010, Bloomberg reports.
After three-straight sessions of gains, the rand fell in value. The euro zone is the top commerce and trade partner to South Africa. Worries are spreading about the bailout's inability to prevent the onset of a recession in Europe as South African bonds also saw three consecutive sessions of increases come to an end.
"The market has responded with a big yawn; after weeks of anxiously waiting, the deal is an anti-climax," indicates an email to Bloomberg penned by currency strategist John Cairns with Rand Merchant Bank in Johannesburg.
European finance ministers stamped approval on the bailout tranche equaling $173 billion in euros in order to maintain the Aegean nation's viability and prevent it from defaulting on financial obligations, some of which are coming due next month.
Reuters reports a confidential study determined the bailout tranche for Greece might not reverse Greece's financial and economic suffering.
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