Johannesburg - South Africa's rand hovered near the previous session's two month lows against the dollar on Monday, weighed down by investors' anxiety over the prospect of renewed mine strikes.
Government bonds were firmer, and yields inversely retreated, with latest data from the JSE securities exchange showing healthy foreign demand for high-yielding local debt last week.
The yield for the secondary market benchmark bond due in 2026 fell six basis points to 8.125 percent while that for the shorter-dated 2015 paper dipped 2.5 basis points to 6.025 percent.
“Flows by non-resident investors in South Africa are more balanced and are on the positive side,” BNP Paribas said in a note.
The rand was at 10.1405 per dollar by 17:43 SA time, edging up 0.35 percent from Friday's close but within easy reach of last week's 8-week trough of 10.2190.
Domestic pressures on the currency come from fears of a major strike in the platinum sector, where labour unrest over the past year has hit investor confidence in Africa's biggest economy.
Workers began a work stoppage over wages at mid-tier producer Northam Platinum on Sunday and there are fears of similar action against top producers Anglo American Platinum, Impala Platinum and Lonmin. - Reuters