Rand slips ahead of dataComment on this story
Johannesburg - South Africa's rand traded on the backfoot against the dollar with an end to a month-long strike in the metals sector failing to stem a slide as one employers' group said it did not accept the deal and planned to lock workers out.
The local unit slipped 0.48 percent from its New York close to 10.6135 per dollar by 08:44 SA time, its weakest level in four days.
The rand made nominal gains in the previous session after union Numsa announced it had accepted a wage agreement with employers that would see over 200,000 of its members return to work.
The currency is expected to be volatile this week as markets look ahead to the release of a number of economic indicators beginning with second quarter unemployment numbers at 13:00 SA time on Tuesday and June trade data on Thursday.
“Trade data so far suggests the current account deficit could widen to more than 6 percent of GDP in Q2,” said Christie Viljoen of NKC Independent Economists in a morning market note.
“South Africa's economy is dependent on foreign portfolio flows to fund this shortfall, which leaves the rand extremely vulnerable to shifts in sentiment toward emerging markets.”
Government bonds were slightly weaker.
The yield on the paper due next year added half a basis point to 6.66 percent, while the yield on the longer-dated paper maturing in 2026 was up 2 basis points to 8.245 percent. - Reuters