Local currency tracks the euro lower as higher Spanish bond yields spark risk-off trade on Friday
THE rand lost ground in afternoon trade on Friday, tracking the euro/dollar weakness on the back of higher Spanish bond yields.
At 3.53pm the rand was bid at R8,2660 to the dollar from its previous close of R8,1639. It was bid at R10,051 to the euro from its previous close of R10,019 and at R12,9204 against sterling from R12,8235 before.
The euro was bid at $1,2159 from its previous close of $1,2274.
"The difference between interest rates on Spanish and German government bonds have also risen, indicating a risk-off trade," said Lynden Reabow, FX sales trader at PSG Prime.
The slide in the euro pushed the currency down to multiyear lows against the dollar and yen, Dow Jones Newswires reported.
The euro’s broad sell-off came as Valencia requested aid from Spain and the European Central Bank said it would stop accepting Greek bonds as collateral.
