Rand eases as strike talks stall

Johannesburg - The rand eased against the dollar on Tuesday as prospects for an end to a strike in the metals sector dimmed, with employers withdrawing a final wage offer made to employees.

Companies in the metals and manufacturing sector retracted their offer of a 10% wage offer to striking Numsa, which is seeking annual increases of between 12% and 15% on behalf of its 220 000 members.

The strike has hit the operations of automobile makers as well as manufacturing and construction businesses.

The rand was down 0.3% on the session at R10.7050 at 17:20, after earlier posting modest gains versus the greenback on the back of stronger-than-expected US retail sales numbers.

Dealers said the currency was unlikely to make any major moves outside its recent trading range ahead of a monetary policy decision on Thursday.

"US retail sales data came out a little stronger and the rand started to strengthen. But there's not much in it. It will remain pretty much in the R10.60/65 range," said Ian Martin, a rand trader at Rand Merchant Bank.

Government bonds also strengthened, with the benchmark paper due in 2026 shedding 7 basis points to 8.255% and outperforming the shorter-dated paper due in 2015 which dropped 1.5 basis points to 6.665%.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.31
+0.1%
Rand - Pound
20.86
+0.0%
Rand - Euro
17.38
+0.0%
Rand - Aus dollar
11.07
-0.2%
Rand - Yen
0.13
+0.2%
Gold
1,838.85
-0.1%
Silver
24.15
-0.0%
Palladium
2,001.00
-0.1%
Platinum
1,027.50
+0.1%
Brent Crude
88.44
+1.1%
Top 40
69,513
0.0%
All Share
76,176
0.0%
Resource 10
77,000
0.0%
Industrial 25
95,623
0.0%
Financial 15
15,206
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot