The South African rand dropped to the lowest level in more than five months on the worries that Egyptian crisis will intensify and as the global inflationary pressure increases.
The concerns that the unrest in Egypt will strengthen emerged after Egyptian President Hosni Mubarak refused to accept the demand of the protester to resign the presidency. The threat of the increasing tensions in North Africa caused the market sentiment to shift to risk aversion and hurt the riskier assets.
USD/ZAR was at 7.3130 as of 14:46 GMT after it opened at 7.2680 and reached 7.3450, the highest level since September 1.
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