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Johannesburg - The rand retreated from a three-week high against the dollar on Monday, losing momentum after data showed unemployment was increasing in Africa's most developed economy.
The rand softened by 0.41%, to R10.5175/$, at 14:50 GMT. Earlier in the session, it briefly touched a three-week high, helped by global demand for riskier assets.
But data released during the session showed unemployment rose to 25.2% of the labour force in the first quarter of 2014, up from 24.1% in the fourth quarter.
Investors were also watching for developments in the strike-hit platinum sector. The crippling unrest in the industry looked certain to go into a sixteenth week, after union AMCU rejected the highest wage offer yet from platinum producers.
Despite the weaker unemployment data, appetite for government debt remained solid.
"SA bond yields had already priced in whatever the tapering story would turn out to be, all the way down to zero. Now the risk premium is gathering. Risk-on in the flows is overpowering the negative data," said Investec trader Kgosi Tshite.
Yields on both government benchmark bonds edged lower. The paper maturing in 2015 was down 3 basis points to 6.735%, while the paper maturing in 2026 lost 3.5 basis points to 8.395%.
The rand softened by 0.41%, to R10.5175/$, at 14:50 GMT. Earlier in the session, it briefly touched a three-week high, helped by global demand for riskier assets.
But data released during the session showed unemployment rose to 25.2% of the labour force in the first quarter of 2014, up from 24.1% in the fourth quarter.
Investors were also watching for developments in the strike-hit platinum sector. The crippling unrest in the industry looked certain to go into a sixteenth week, after union AMCU rejected the highest wage offer yet from platinum producers.
Despite the weaker unemployment data, appetite for government debt remained solid.
"SA bond yields had already priced in whatever the tapering story would turn out to be, all the way down to zero. Now the risk premium is gathering. Risk-on in the flows is overpowering the negative data," said Investec trader Kgosi Tshite.
Yields on both government benchmark bonds edged lower. The paper maturing in 2015 was down 3 basis points to 6.735%, while the paper maturing in 2026 lost 3.5 basis points to 8.395%.
