Rand weakens as Numsa rejects offer

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NewRandMoney Reuters.

Johannesburg - South Africa's rand was on the back foot against the dollar on Friday, extending losses after sources said the Numsa union had rejected the latest wage offer from employers to end a 10-day strike by metal and engineering workers.

Africa's biggest economy faces the threat of recession as strikes take their toll on growth, with GDP contracting in the first quarter due to a five-month platinum boycott.

At 08:54 SA time the rand was trading at 10.7350 to the dollar, down 0.4 percent from its Thursday close.

Although a lack of local and international data was likely to keep the rand in a tight range, market players are likely to keep a close eye on global risk appetite and developments in the local strike, Barclays Africa said in a note.

The National Union of Metalworkers of South Africa has turned down employers' offer to increase wages by 10 percent this year and 9.5 percent in 2015 and is extending its strike, union sources told Reuters on Friday.

Government bonds weakened alongside the rand, with yields for the benchmark instrument maturing in 2026 and the shorter-dated 2015 issue each adding 3 basis points to 8.355 percent and 6.725 percent respectively. - Reuters

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