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Johannesburg - The rand recouped some of the previous day's losses against the dollar on Tuesday, although it remains vulnerable to an unresolved three-month platinum strike at home and geopolitical tensions in Ukraine.
By 17:25 GMT, the rand traded at R10.5550/$ after ending Monday's session at R10.6205/$.
Government bonds edged higher, pulling the yield for the 2026 secondary market benchmark 2 basis points lower to 8.475% while the shorter-dated 2015 instrument dipped half a basis point to 6.810%.
The rand had hit a session low of R10.6700/$ on Monday, its weakest since April 3 according to Thomson Reuters data, as the failure to end the crippling 14-week platinum strike dented investor appetite, already undermined by the conflict in Ukraine.
On Tuesday, the striking mining union Amcu said its members had rejected the latest wage offer from the world's top three platinum producers.
"The rand is vulnerable to geopolitical tensions, more widespread domestic labour disputes, South African trade data and U.S. employment data over the coming days," Barclays Africa said in a note.
"If the trade balance reading registers a significant deficit, the rand could fall victim to fresh round of current account fears, especially given that capital inflows have started to wane in more recent weeks."
Data from the South African revenue service on Wednesday is expected to show a trade deficit of R1.5bn rand for March. , adding to pressure on the current account.
A persistent shortfall of around 6% of GDP in South Africa's balance of payments has long been a weak point for the rand, earning it a place among the so-called "fragile five" emerging currencies most vulnerable to global risk aversion.
By 17:25 GMT, the rand traded at R10.5550/$ after ending Monday's session at R10.6205/$.
Government bonds edged higher, pulling the yield for the 2026 secondary market benchmark 2 basis points lower to 8.475% while the shorter-dated 2015 instrument dipped half a basis point to 6.810%.
The rand had hit a session low of R10.6700/$ on Monday, its weakest since April 3 according to Thomson Reuters data, as the failure to end the crippling 14-week platinum strike dented investor appetite, already undermined by the conflict in Ukraine.
On Tuesday, the striking mining union Amcu said its members had rejected the latest wage offer from the world's top three platinum producers.
"The rand is vulnerable to geopolitical tensions, more widespread domestic labour disputes, South African trade data and U.S. employment data over the coming days," Barclays Africa said in a note.
"If the trade balance reading registers a significant deficit, the rand could fall victim to fresh round of current account fears, especially given that capital inflows have started to wane in more recent weeks."
Data from the South African revenue service on Wednesday is expected to show a trade deficit of R1.5bn rand for March. , adding to pressure on the current account.
A persistent shortfall of around 6% of GDP in South Africa's balance of payments has long been a weak point for the rand, earning it a place among the so-called "fragile five" emerging currencies most vulnerable to global risk aversion.
