Rand rattled by Lonmin saga

2012-08-17 09:51

Johannesburg - The rand weakened against the dollar on Friday partly hit by a dip in sentiment a day after a police crackdown on striking miners at Lonmin [JSE:LON] left more than 30 people dead.

Yields edged higher as government bonds also weakened although local debt still holds appeal in the long term because of much higher returns that those offered by safer havens.

By 06:44 GMT the rand was 0.34% weaker at R8.2510 against the dollar after closing at R8.2230 in New York on Thursday.

“The mining story has gotten a lot of international play and I see it affecting short-term sentiment although I don’t see it lasting too long,” a rand trader in Johannesburg said.

Heavily armed South African police patrolled Lonmin’s Marikana platinum mine on Friday after the crackdown, which drew comparisons with apartheid-era brutality.

Governments retreated slightly, and the yield on the heavily traded 14-year government bond edged up half a basis point to 7.67% while that for the three-year bond  was up one basis points at 5.595%.

South Africa's yield spread over US Treasuries and many other developed market bonds remains attractively wide, Tradition Analytics said in a note.

“Portfolio flows into South Africa are not therefore likely to dry up completely any time soon,” it added.

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  • mike.dufham.7 - 2012-08-17 10:23

    Great news for me with my dollars. Keep it up. The longer the better

      maphumulo.m - 2012-08-17 10:54

      I don't think it's good under these circumstances mike.dufham, but I feel you. for those of us whose income depends on the forex, I can't complain.

  • ben.teddybare - 2012-08-17 10:41

    Yippee.... pay increase

  • larry.piggott1 - 2012-08-17 10:44

    Rand rattled by corruption. Rand Rattled by Incompetence Rand Rattled by Crime. Rand Rattled by Violence Rand Rattled by Cronyism Rand Rattled by Cadre deployment. Rand Rattled by inefficiency. = Rand Rattled by the ANC

      kevin.pitzer - 2012-08-17 10:57

      Rand rattled by Ineptocracy !

  • chaapo.sithole - 2012-08-17 10:45

    The reckoning has started and will reverberate for some time. That will mean even tighter conditions for the workers - thanks to the fools who have no understanding of cause and effect.

      john.morreira.9 - 2012-08-17 10:59

      Chaapo you got hit the nail on the head:"no understanding of cause and effect." This is the essence of the problem with the ANC and of course the ANCYL as well as COSATU and all the others who continue to cling to ludicrous policies.

  • itse.nnete.1 - 2012-08-17 13:02

    Continue upsetting miners and they will all go on strike at once,and RSA will be on it's knees,then only then will you value them and see their worth. - 2012-08-17 18:47

      Which means less gold on the open market, which means more demand less supply, equals higher price for gold, equals more money for me. So for all I care the miners can pack it in and go home. Who cares if they never extract another ounce from the ground.

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