Rand Vulnerable to More Wage Strikes!!!! As Numsa strike hits operations of major auto makers. South Africas Rand weakened slightly against the Dollar this morning, with scope to extend losses as the countrys largest labour union enters the third week of a wage strike that has hit the operations of major auto makers. At 06:46a.m. the Rand was trading @ 10.7050/Dollar, down 0.28% from its previous close. In fixed income, the yield for the 2026 benchmark added 1 basis point to 8.335% while the 2015 paper at the short end of the curve was flat at 6.67%. Leaders of the National Union of Metalworkers of South Africa are expected to draw up plans on widening a strike that has dealt another blow to an economy still counting the cost of a five-month platinum sector stoppage at the start of the year. While strikes are very familiar to investors, they nonetheless have a dampening effect on confidence. South Africa will struggle with narrowing its current account deficit as import growth remains strong. Compiled by:- Kgomotso Mohajane
Posted on: Tue, 15 Jul 2014 07:59:16 +0000
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