Johannesburg - The rand firmed against the dollar on
Wednesday buoyed by the possibility that some striking workers could return to
work after weeks of labour unrest.
The rand was 0.21% firmer at R8.7226 against the dollar at
06:28 GMT, from the close of R8.7385 in New York on Tuesday.
Some striking truckers have agreed to return to work on
Wednesday, after two weeks of strikes in the transport sector have hit supplies
of fuel, cash and consumer goods.
"The ZAR did extend its recovery yesterday on the
improved prospects for the trucking strike but has since stalled with the
outcome as yet unknown," said Tradition Analytics in a note to clients.
Bonds also took reprieve from the news, the yield on the
three year bond fell 3.5 basis points to 5.44% and that on the longer-dated
bond declined three basis points to 7.75%.
Bond traders will look out for clues on future interest
rates from Reserve Bank Governor Gill Marcus, who is due to speak at Rhodes
University's Business School early in the trading session.
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