News Column

Rand under pressure from strike-hit mining sector

February 21, 2014

THE rand retreated against the US dollar today, weighed down by continued labour strife in the mines, which compounded the impact of a generally risk-averse global market environment.

The rand was quoted at 11.0350 to the dollar, down 0.36 percent from yesterday's close.

As with other emerging market currencies, the rand has wilted in the wake of hawkish comments from the US Federal Reserve, soft manufacturing data out of China and political tension in Ukraine.

The rand dropped a couple of cents today after police said a miner was killed by a group of men at a mine belonging to Anglo American Platinum, the latest violence in the turbulent, strike-hit sector.

"The rand is once again looking vulnerable to extended weakness in the near term," Barclays said in a market note.

Government bonds were not far off yesterday's closing levels, with yields for the benchmark 2026 and 2015 bonds each shedding 1 basis point to 8.655 percent and 7.34 percent respectively. - Reuters

Daily News

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Source: Daily News (South Africa)

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