JOHANNESBURG: South Africa's rand extended losses against the dollar on Thursday, hitting an 11-week low as waves of strikes across the mining industry continued to dent sentiment toward local assets.
By 1528 GMT, the rand was trading at 8.5025 versus the greenback, down 0.97 percent from the New York close of 8.4210. It hit an 11-week low of 8.5490 earlier in the session.
"Given the current environment locally with regards to all the strikes and violence, it seems like there is an expectation of further weakening on the rand," said Warrick Butler, a currency trader at Standard Bank.
"The move up to 8.55 has been a combination of stop-losses being triggered in the market as well as offshore demand for the dollar."
The local currency shrugged off gains made by the euro against the dollar after the European Central Bank kept its benchmark interest rate at a record low of 0.75 percent at a policy meeting.
The rand often tracks the euro, the currency of its largest trading partner.
Fallout from the unrest in the mines, which account for 6 percent of GDP, has put pressure on the rand, which has fallen to near three-year lows against the dollar.
It has also fuelled concern about growth, forecast by the government at 2.7 percent.
Wildcat strikes have spread to three more mines run by world No. 1 platinum producer Anglo American Platinum.
Demand for government bonds is tapering off after the country's Oct. 1 inclusion in the World Government Bond Index which has spurred foreign purchases of local debt in the last few months.
Bonds retreated, with yield's edging up 3.5 basis points to 7.525 percent on the 2021 issue, and half a basis point to 5.320 on the three-year benchmark.
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