Rand under pressure from strikes

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NewRandMoney

Reuters.

Johannesburg - South Africa's rand retreated against the dollar on Friday, weighed down by continued labour strife in the mines, which compounded the impact of a generally risk-averse global market environment.

By 09:03 SA time the rand was trading at 11.0350 per dollar, down 0.36 percent from Thursday's close.

As with other emerging market currencies, the rand has wilted in the wake of hawkish comments from the US Federal Reserve, soft manufacturing data out of China and political tension in Ukraine.

The local currency dropped a couple of cents on Friday after police said a miner was killed by a group of men at a mine belonging to Anglo American Platinum, the latest violence in the turbulent, strike-hit sector.

“The rand is once again looking vulnerable to extended weakness in the near term,” Barclays said in a market note.

Government bonds were not far off Thursday's closing levels, with yields for the benchmark 2026 and 2015 bonds each shedding 1 basis point to 8.655 percent and 7.34 percent respectively. - Reuters


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