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Rand flat as Iraq fears cap optimism

Johannesburg - The rand was flat against the dollar on Wednesday as heightened tensions in Iraq tempered domestic optimism about platinum miners returning to work after the end of a five-month strike.

Workers from the The Association of Mineworkers and Construction Union (Amcu) signed a wage agreement with the three top platinum producers on Tuesday but production is only expected to return to full swing in three months.

However, the end of the costliest strike in mining history is a relief for Africa's most advanced economy, which shrank in the first quarter as a result of the stoppage.

The local unit was trading at R10.63 to the dollar at 08:56, just 0.04% firmer than Tuesday's close in New York.

"Hard work begins now to get workers ready to go underground, to get platinum mines profitable again and to restore faith in the economy as an investment destination," said Christie Viljoen of NKC Independent Economists.

"The local unit found support as the dust settled following the costliest strike in the nation's history."

Emerging market gains were capped by tensions in Iraq and Barclays Capital said the rand would remain sensitive to developments in the Middle East. It could also weaken if US durable goods data expected on Wednesday is robust.

Government bond yields were little changed, with the yield for the bond maturing next year slipping 0.5 basis points to 6.690% while the 2026 issue was down 0.5 basis points to 8.350%.

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Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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