Mining strikes put rand under pressure, bonds also weak

Labour strife in South Africa's mining sector has helped shave off more than 21% of the rand's value against the dollar since the beginning of the year. (Gallo)

Labour strife in South Africa's mining sector has helped shave off more than 21% of the rand's value against the dollar since the beginning of the year. (Gallo)

The rand could lose further ground as the greenback remains supported by jobs data that has boosted chances the United States will soon pull back on its bond-buying programme.

News that Anglo American Platinum, the world's number one producer of the precious metal, has been hit by a wildcat strike at one of its South Africa mines will weigh further on local sentiment.

Labour strife in South Africa's mining sector has helped shave off more than 21% of the rand's value against the dollar since the beginning of the year.

The rand was changing hands at 10.2765 against the dollar by 6.36am GMT, down 0.73% from Friday's 10.2045 close.

Federal Reserve chairperson Ben Bernanke signaled last month the US central bank would likely rein in its bond purchases as the world's biggest economy shows signs of recovery.

This would drain billions of dollars out of high-yielding but risk-laden emerging markets such as South Africa.

Government bonds followed the rand weaker on Monday, with the yield on the 2026 bond adding 6.5 basis points to 8.17%.

The yield on the 2015 paper was up seven basis points to 6.22%. – Reuters

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