Wednesday, 16 May 2012 00:17
JOHANNESBURG: South Africa's rand extended losses to hit the year's weakest level against the dollar on Tuesday as risk sentiment soured further, though bonds held steady on support from good German growth numbers and a better than expected domestic auction.
News that Greece will hold new elections after leaders failed to form a coalition government focused attention on the possibility it might leave the euro, driving investors to dump risk for traditionally safe assets such as the dollar.
The rand was down 1.0 percent on the dollar at 8.2990 at 1519 GMT, its weakest level this year and off a 8.2175 close in New York on Monday.
The rand broke through 8.24 support once the euro plunged below $1.28, and may head to 8.31 in the next session. Analysts say that even though the rand is over-stretched, exporters could be holding out for 8.50.
But the rand is likely to correct from over-sold levels ...