adminJohannesburg. – THE rand was steady at firmer levels yesterday morning, buoyed by news that the five-month strike in the platinum sector has come to an end. The Association of Mineworkers and Construction Union on Monday officially declared an end to the strike following a centralised mass meeting where union members overwhelmingly endorsed a return to work.
A three-year wage agreement would be signed yesterday ahead of a return to work today, Amcu president Joseph Mathunjwa said after the mass meeting in Rustenburg.
In the morning the rand was at R10,5781 to the dollar from R10,5742 at Monday’s close.
Against the euro‚ it was at R14,3870 from its previous close of R14,3904.
It was at R18,0167 against the pound from R18,0152 at its close. The euro was at $1,3596 from $1,3601 on Monday.
Barclays Research said in a early morning note that despite the local positives market participants should be cautious ahead of this week’s US inflation reading and given the situation in Iraq.
“Although oil prices show signs of stabilising, geopolitical tension in Iraq remains elevated and yesterday’s above-consensus US housing data could support normalisation of Federal
Reserve policy sooner than expected.
An elevated US inflation reading later in the week or heightened geopolitical tension in Iraq could stymie the rand recovery.
Today, rand bulls will be hoping for an encouraging domestic employment report and a soft new home sales reading in the US,” said Barclays. – BDlive.
Online Reporter