South Africa rand softer on Greek fears, weak local economy

Reuters
The hand of South African Reserve Bank Governor Gill Marcus is seen holding South Africa's new rand banknotes in a file photo. REUTERS/Siphiwe Sibeko

JOHANNESBURG (Reuters) - South Africa's rand was a touch softer against the dollar on Friday, with investors' jitters over Greece's debt crisis adding to concerns about the struggling local economy. A local survey showed consumer sentiment plunged to a 14 year-low in the second quarter, adding to concerns Africa's most advanced economy might not even manage 2 percent growth this year. The pressure on the rand currency was partly offset by disappointing U.S. employment data which limited dollar gains. By 0702 GMT the rand was at 12.2875 to the dollar, down 0.31 percent from Thursday's close. Government bonds were little-changed from previous levels, with the yield on debt due in 2026 at 8.26 percent. The rand has fallen more than 6 percent against the dollar this year as investors expecting rates to increase in the U.S. bail out of higher-yielding but riskier emerging markets. Fears of contagion after Greece defaulted on its repayment to the IMF has further increased the appeal of so-called "safe haven" assets.