The South African rand fell today as talks among Greece and private bondholders no longer cause optimism among investors, but rather make them concerned. Worsening market sentiment has a negative impact on assets of emerging economies.
Talks among Greece and creditors may end in a stalemate as bondholders demand 4 percent yield, while the country strives for less than 3.5 percent interest rates. The discussion let economists believe that problems of Greece are greater than was thought, but investors hope that the Greece woes won’t affect other countries of the eurozone. The Stoxx Europe 600 index lost 1 percent today.
USD/ZAR was up from 7.9050 to 7.983 as of 14:31 GMT today.
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