* Rand could see 7.95/dollar
* Bonds follow rand weaker, yields up
* Credit, money supply data Tuesday
JOHANNESBURG, Jan 30 (Reuters) – South Africa’s rand
fell more than 1 percent on Monday as investors globally shunned
risky assets and data showing a narrowing budget deficit failed
to encourage investors as public finances are expected to be
under pressure over the next few years.
Government bonds also fell, with some dealers saying local
assets were also hit by profit taking after strong gains last
week.
South Africa’s budget deficit narrowed in the first nine
months of the financial year but it is expected to be hit by
weak revenue over the next few years.
The markets were pre-occupied with the euro zone debt crisis
and risk aversion re-emerged due to the lack of a breakthrough
in Greece’s talks with its private creditors on a debt swap.
Athens needs to secure an agreement to gain access to its second
bailout and avoid a disorderly default.
The rand fell more than 1.3 percent to a session
low of 7.8750.
By 1520 GMT, it was trading at 7.86 to the dollar compared
with Friday’s New York close of 7.77.
Continued…
