Johannesburg - The rand was a touch firmer against the
dollar on Tuesday but remained vulnerable to labour unrest that has sent the
currency plunging over the past several weeks.
By 06:43 GMT, the rand was trading at R8.770 to the
greenback, slightly stronger than Monday's New York close of R8.7841.
have been encouraged by some firms taking tough measures against wildcat
strikers who have paralyzed parts of the mining sector responsible for about 6%
Kumba Iron Ore [JSE:KIO] late on Monday fired more than 100
strikers who halted operations at its giant Sishen mine and threatened to
destroy equipment worth hundreds of millions of dollars.
"Long to medium term, the rand may be considered weak
or under-valued, but I think with the negative sentiment out there, the
vulnerable side is for the rand to weaken further," said Garth Klintworth,
head of fixed income, commodities and currencies at Absa Capital.
Standard & Poor's cut South Africa's credit rating one
notch after trading ended in Johannesburg on Friday, saying strikes and social
tensions could reduce fiscal flexibility and hurt growth in the continent's
In a move that raised the stakes, striking gold miners
refused the industry's latest pay rise on Monday, dimming hopes that the
illegal strike in the sector will end soon.
The yields on the three-year benchmark and that for the
14-year issue were 2 basis points lower to 5.41% and 7.780% respectively.
Treasury will sell a total of R2.1bn over a range of its
2023, 2041 and 2048 government bonds in the session. Results are due after the
auction closes at 09:00 GMT.