South African Rand Falls on Greek Crisis, Trims Losses

The South African rand dropped today as the disagreement of the European Union leaders about the bailout for Greece reduced appeal of riskier currencies, but erased most of its losses after the European politician assured that they will help Greece.

Jean-Claude Juncker, the Prime Minister of Luxembourg, said that the sovereign-debt crisis won’t spread to Italy. According to Juncker, George Papandreou, Prime Minister of Greece, claimed that he’ll do any measures necessary to receive the aid. Anyway, renewed concerns the debt crisis sapped strength of higher-yielding currencies, including the rand.

USD/ZAR traded near 6.7510 as of 16:41 GMT today after surging from 6.7430 to 6.8040.

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