Rand gains as data hurts US dollar

Published Oct 2, 2014

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Johannesburg - The rand strengthened against the US dollar on Thursday, extending its gains into a second session as the greenback slid on weaker-than-expected manufacturing activity.

At 08:24 SA time the rand was 0.49 percent stronger vs the US dollar, its firmest in five days, trading at 11.2055 off a New York close of 11.2650.

The local unit carried over its positive momentum from the previous session, strengthening after the dollar fell against major currencies as the world's largest economy reported that factory activity in September had slowed.

The rand remains vulnerable to further labour tensions after a 280,000-member public servant union announced demands on Wednesday for a 15 percent pay increase, far above inflation.

Africa's most developed economy is still reeling from a six-month platinum strike earlier this year.

Earlier this month, central bank Governor Gill Marcus reiterated her concern that recent wage demands and some settlements have not matched inflation and productivity.

Government bonds were flat in morning trade, with yields on the paper due in 2026 unmoved at 8.325 percent. - Reuters

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