The South African rand slipped for a second-straight session against the U.S. dollar on Friday, pulled down by concerns about the economy of the euro zone, Bloomberg reports.
The currency of the nation hosting the largest economy on the African continent has fallen 0.1 percent during the past five days of trading. Services and manufacturing industries in the beleaguered euro zone shrank last month, prompting conjecture about a worsening economic system as two of the region's nations conduct elections this weekend.
"The weekend's elections in France and Greece will be closely eyed over concerns of new governments backpedalling on the required fiscal reforms. There could be further weakness in store for the rand." According to an email authored by currency strategist Nomvuyo Guma with Standard Bank Group in Johannesburg to the news service.
The governor of the nation's central bank has gone on record stating he does not intend to intervene to pull down the currency's appreciation.
The rand is sensitive to occurrences in the euro zone due to close trade and commerce relations between South Africa and the 17 nations using the monetary unit, according to Reuters.
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