/ 20 August 2001

Rand moves weaker on Argentina, Zimbabwe fears

Johannesburg | Monday

THE South African rand opened sharply weaker on Monday largely in response to events surrounding Argentina’s economic situation.

Dealers said investors dumped emerging market currencies in the absence of an announced deal with the International Monetary Fund to tap fresh financial relief money for Argentina.

At 0925 local time (0725 GMT) the local unit was at 8,3100 to the US dollar from 8.2690 at the previous close.

Traders also blamed the weakening in the rand on the situation in Zimbabwe, which is creating fears in southern Africa that a refugee crisis could develop.

According to dealers, a few deals were reported at 8,30

”There was one large importer demand, which drove the rand up it early worst of 8,3375” said a dealer.

Meanwhile, the rand remained vulnerable against sterling and was last quoted at 12,0125 to the pound from 11,9468. It also remained weak against the euro, standing at 7,6184 from 7,5797 before.

The local unit is likely to move in a 8,28-8,33 to the dollar range. – Sapa