The South African Rand has declined in Monday’s trading session as concerns over the health of former President Nelson Mandela affected the market.
Mr Mandela, 94, who was South Africa’s first black president, was taken to hospital in Pretoria earlier in the month and for a third time this year was said to be in a critical condition.
On Sunday the South African government issued a statement saying that the condition of the first president of post-apartheid South Africa has become critical.
Mr Mandela is revered for leading the fight against white minority rule in South Africa and then preaching reconciliation despite being imprisoned for 27 years. He left power after five years as president.
“The Mandela news is a sentiment factor‚ while on the fundamental side‚ we are seeing continuing foreign selling of our bonds as US Treasury yields continue to ratchet higher‚” a local trader said.
Also weighing on the Rand is the increased demand by investors for the US Dollar following last week’s speech by Federal Reserve Chairman Ben Bernanke that the US Central Bank will begin easing its quantitative easing programme in the near future. Most Emerging market currencies have declined as a result.
In its morning report on Monday‚ Absa Capital said the rand did manage to stop weakening on Friday.
“We believe the local unit remains vulnerable to extended selling pressure‚ mainly because we think that emerging markets are likely to be susceptible to continued broad-based dollar strength as well as potential redemption risk into quarter end.
“Domestic risks‚ such as lingering labour tensions‚ tight electricity supply conditions and the possibility of another credit rating downgrade have by no means disappeared‚ even though they have been placed on the back burner due to the aforementioned heightened global concerns‚” the bank said.
The Rand is now trading beyond the key R10 figure.
Current South African (ZAR) Exchange Rates
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The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.2196 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.3918 <
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.3694 <
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.8803 <
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7175 <
(Correct as of 10:15 am GMT)
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