JOHANNESBURG: South Africa's rand weakened in line with other commodity currencies on Monday amid concerns about faltering global growth and scepticism that another European Union summit this week will offer any respite for the debt-ridden region.
European leaders are due to discuss specific steps towards a cross-border banking union, fiscal integration and the possibility of a debt redemption fund - talks that are likely to sway investors' attitudes to riskier emerging market assets.
The rand was 0.24 percent weaker at 8.4350 at 0645 GMT from Friday's New York close of 8.4100.
"The rand has continued on a weaker bias. We looking for 8.6 on the rand," said Brigid Taylor, head of institutional sales at Nedbank, one of South Africa's four big retail banks.
"We're keeping an eye on the euro summit this week as well as trade deficit numbers towards the end of this week which are likely to confirm the deterioration in tax revenues."
In the local bond market, the yield for the three year bond was up 1.5 basis points to 6.035 percent and that on the fourteen year paper was up by the same margin to 8.015 percent.
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