JOHANNESBURG: The rand weakened within a recent range against the dollar early on Monday, with bonds also turning weaker after more bouts of labour unrest in the mining and transport sectors.
The rand was down 0.2 percent at 9.24 to the dollar at 0635 GMT, off a 9.2220 close in New York on Friday.
Dealers expect the rand to come under pressure from domestic labour strife and protests for government services rearing their head again this week.
A miner was stabbed near an AngloGold mine on Saturday, while local media said a man had died during a riot in Soweto, the sprawling township near Johannesburg. A bus drivers' strike was also preventing thousands from going to work on Monday.
"(This) serves as a reminder of how vulnerable the rand still is to domestic industrial action, especially the bus workers' strike, which could have far reaching effects for the economy," Absa Capital said in a note to clients.
However, the rand is not expected to weaken past last week's 9.26 low, with dollar/rand requiring strong momentum to move out of a 8.9405-9.2577 band set last week.
Comments
Comments are closed for this article.