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Rand weakens as strikers reject wage deal

Johannesburg - The rand was on the back foot against the dollar on Friday, extending losses after sources said the National Union of Metalworkers of South Africa (Numsa) had rejected the latest wage offer from employers to end a 10-day strike by metal and engineering workers.

Africa's biggest economy faces the threat of recession as strikes take their toll on growth, with gross domestic product (GDP) contracting in the first quarter due to a five-month platinum boycott.

At 08:54 the rand was trading at R10.7350 to the dollar, down 0.4% from its Thursday close.

Although a lack of local and international data was likely to keep the rand in a tight range, market players are likely to keep a close eye on global risk appetite and developments in the local strike, Barclays Africa said in a note.

The Numsa union has turned down employers' offer to increase wages by 10% this year and 9.5% in 2015 and is extending its strike, union sources told Reuters on Friday.

Government bonds weakened alongside the rand, with yields for the benchmark instrument maturing in 2026 and the shorter-dated 2015 issue each adding 3 basis points to 8.355% and 6.725% respectively.

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Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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