Rand vulnerable to more strikes

Comment on this story
NewRandMoney Reuters.

Johannesburg - South Africa's rand weakened slightly against the dollar on Tuesday, with scope to extend losses as the country's largest labour union enters the third week of a wage strike that has hit the operations of major auto makers.

At 08:46 SA time the rand was trading at 10.7050/dollar, down 0.28 percent from its previous close.

In fixed income, the yield for the 2026 benchmark added 1 basis point to 8.335 percent while the 2015 paper at the short end of the curve was flat at 6.67 percent.

Leaders of the National Union of Metalworkers of South Africa are expected to draw up plans on widening a strike that has dealt another blow to an economy still counting the cost of a five-month platinum sector stoppage at the start of the year.

“While strikes are very familiar to investors, they nonetheless have a dampening effect on confidence,” Rand Merchant Bank analyst Mamello Matikinca said in a note.

“South Africa will struggle with narrowing its current account deficit as import growth remains strong.” - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines