Rand touches 4-year lows against the dollar

2013-05-18 09:23

South Africa’s rand touched fresh four-year lows against the dollar and could weaken further towards technical support at 9.5 as labour strife in the mine sector weighs on sentiment.

The rand fell more than 1.2% to 9.4410 per dollar early in the session, the weakest it has been since April 2009, as tensions simmered at Anglo American Platinum over its plan to axe 6 000 jobs.

“We have recovered marginally from the worst levels of the day (due to) slightly greater interest this afternoon from some dollar sellers perhaps squaring up for the weekend, but overall the rand hasn’t performed well,” said William van Rijn, a trader at Nedbank.

Investors are still worried that a recent spate of strikes in the sector could trigger violence similar to that which killed more than 40 people last year, including 34 protesting miners shot dead by police.

The violence has dented sentiment towards South African assets, contributing towards a 9% tumble in the rand’s value against the greenback since the beginning of 2013.

“Unfortunately, any sort of industrial action in South Africa of late, especially in the mining sector, has led to a certain degree of bloodshed and that translates into a great degree of discomfort in the market,” van Rijn added.

Government bonds were little changed from their previous closing levels, with the yield for the benchmark 2026 paper edging up half a basis point to 6.84% while the 2015 issue added 1 basis point to 5.05%.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.