Rand drops amid concerns for success of Greece's bailout

The value of the South African rand dropped Tuesday against the world's reserve currency amid concerns the second bailout deal for Greece since June 2010 will not prevent the onset of a recession in the euro zone, according to Bloomberg.

The monetary unit of the largest economy on the African continent, which halted three consecutive days of climbs against the U.S. dollar, is sensitive to developments in the euro zone since it is the top trading partner to South Africa. The value of South African bonds also dropped after three days of increases.

"The bailout simply means that Greece lives to die another day," states an email authored by currency strategist John Cairns with Rand Merchant Bank in Johannesburg to the news service.

The bailout tranche, equivalent to $173 billion in euros, was approved by finance ministers of European nations to prevent the Aegean nation from failing to meet its financial obligations, which would prompt tumult and upheaval with banks, markets and public finance systems - not only in Europe.

A confidential study indicated the second tranche of bailout funding disbursed to Greece might not be enough to prevent a return to the trying times the nation presently is struggling through, according to Reuters.