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Rand slips despite end to metals strike

Johannesburg - The rand traded on the backfoot against the dollar on Tuesday with an end to a month-long strike in the metals sector failing to stem a slide as one employers' group said it did not accept the deal and planned to lock workers out.

The rand slipped 0.48% from its New York close to R10.6135 per dollar by 08:44, its weakest level in four days.

The rand made nominal gains in the previous session after Numsa announced it had accepted a wage agreement with employers that would see over 200 000 of its members return to work.

The currency is expected to be volatile this week as markets look ahead to the release of a number of economic indicators beginning with second quarter unemployment numbers at 13:00 on Tuesday and June trade data on Thursday.

"Trade data so far suggests the current account deficit could widen to more than 6% of GDP in the second quarter," said Christie Viljoen of NKC Independent Economists in a morning market note.

"South Africa's economy is dependent on foreign portfolio flows to fund this shortfall, which leaves the rand extremely vulnerable to shifts in sentiment toward emerging markets."

Government bonds were slightly weaker. The yield on the paper due next year added half a basis point to 6.66%, while the yield on the longer-dated paper maturing in 2026 was up 2 basis points to 8.245%.

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Rand - Dollar
18.92
-0.1%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.1%
Platinum
909.30
+1.4%
Palladium
1,015.00
+1.3%
Gold
2,220.40
+1.2%
Silver
24.86
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
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