News Column

Weak rand breaks key R11 level to dollar

January 24, 2014

At 5pm yesterday, the rand was bid at R10.9634 to the dollar, 10.2c weaker than at the same time on Wednesday, after earlier touching R11. Against the pound and the euro, the rand was roughly 2 percent weaker, at R18.2789 and R14.9689, respectively. Members of the Association of Mineworkers and Construction Union walked out at Anglo American Platinum , Impala Platinum and Lonmin yesterday, demanding hefty wage hikes their employers said were "unaffordable and unrealistic". The government has offered to mediate to end the dispute that threatens to squeeze an already struggling economy. Traders said it was inevitable the rand would breach R11 given negative sentiment over persistent labour strife in Africa's biggest economy. "The strikes obviously [have] a big impact because that influences the sentiment, so everybody's scared that violence is going to break out again," said Bidvest Bank trader Ion de Vleeschauwer . "As soon as there's violence with the labour issues, the sentiment will just go out the window." Government bonds weakened with the rand. Cape Times

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Cape Times (South Africa)

Story Tools