adminJohannesburg — The rand held largely steady against the dollar yesterday, but could pull away from its recent 2014 highs as investors fret over reports of violence flaring up at strike-hit mines. Four miners have been killed in clashes since the weekend, as tensions mount over a four-month strike for higher wages which has paralysed output at the world’s largest platinum producers.
At 08:39 GMT, the rand was at R10.3600 to the dollar, barely changed from Monday’s close at R10.3610.
In fixed income, government bonds were also little changed from overnight closing levels, with the yields for the 2026 and 2015 issues each adding a basis point to 8.175 percent and 6.595 percent respectively.
The rand has gradually drifted away from last week’s high of R10.3125, the strongest it has been so far this year, as rising tensions in the Ukraine and violent domestic strikes weigh on investor sentiment.
Police said they had deployed additional manpower to the platinum belt to provide security for thousands of striking miners who expected to start returning to work in defiance of their union as the prolonged work boycott hits their livelihoods.
Mining data due out at 09:30 GMT will give an indication of the impact of the strike and how this might alter GDP growth.
Online Reporter