JOHANNESBURG: The rand weakened near a four-year low against the dollar early on Wednesday, stung by concerns about labour unrest, but market players said it was unlikely to fall much further while investors awaited domestic inflation data.
The rand fell 0.4 percent to 9.5900 early in the session. It hit a four-year low of 9.61 on Tuesday, dragged down by worries about labour tension in the mining industry and a firm dollar.
Dealers expect a rebound from the sharp fall of the past 9 sessions, with the 9.61 level seen as resistance for dollar bulls.
"The upside momentum could start to stall around these levels. Failure to break above the prior high of 9.6100 seen yesterday could see the dollar/rand top out," Tradition Analytics told investors in a morning note.
"Those trading off a long dollar base should proceed with caution and even consider trimming some of their long dollar positions."
Consumer price inflation numbers for April are due at 0800 GMT. The data will be keenly watched as it comes a day before the central bank announces a decision on monetary policy after three days of deliberations.
Economists expect inflation to brake to 5.8 percent year-on-year in April, from 5.9 percent in March.
Government bond yields dropped 3.5 basis points to 5.16 percent on the 2015 note and 3 basis points to 7.02 percent on the 2026 issue.
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