Johannesburg - The rand weakened against the dollar on Monday, hit by continued labour unrest in Africa's largest economy with construction and airport workers the latest to down tools.
South Africa's currency fell to 10.3375 to the dollar in the session, compared to Friday's New York close of 10.2445.
Construction and airport workers went on strike for higher wages on Monday, adding to a spate of industrial action that threatens to drag on already struggling economic growth.
“The rand has been under a lot of pressure, and it is a function of what is happening on the economic front, given all the strike action which is having an adverse impact on economic growth going forward,” said Richard Farber, a trader with World Wide Capital Securities.
“People are being quite specific in terms of what assets they hold globally, and the rand is not one of them at the moment.”
Data on Monday showed offshore accounts offloaded 2 billion rand ($195 million) in local debt last week, being net sellers for the first time since the week ended June 21, in line with a global sell-off in emerging markets.
Yields on government bonds rose 3 basis points each to 8.535 percent on the 2026 issue and 6.380 percent on the 2015 note.
Dealers said liquidity on Monday was thinned by a market holiday in London and market jitters ahead of some key economic data this week.
Local data releases due this week include second-quarter GDP growth on Tuesday, PPI on Thursday, credit demand, money supply and trade numbers on Friday. - Reuters