* Weakens over 1 percent
* Bonds buck weaker trend to track Treasuries in late trade
JOHANNESBURG Aug 30 (Reuters) – South Africa’s rand fell
through key support against the dollar on Thursday with
investors selling the currency on risks associated with unrest
in the country’s mining sector.
Late afternoon weakness in the euro extended the local
unit’s losses to over 1 percent against the dollar.
At 1623 GMT the rand was down 0.9 percent at
8.4895/dollar compared to it previous close, recovering slightly
from a session low of 8.4961 hit as the euro fell against the
dollar.
The rand bears quickly fell through its 8.45/46 support area
earlier in the session, weakening more than its emerging market
peers as festering domestic labour strife knocked investors’
confidence in South Africa.
Emerging market currencies were weaker on Thursday and the
rand took the second worst spot after the Russian rouble in a
basket of emerging market currencies traded against the dollar
and tracked by Reuters.
“We think that a combination of profit taking on the back of
the recent rally and the domestic developments in South Africa
have been a source of rand weakness,” said Roderick Ngotho,
emerging market forex strategist at The Royal Bank of Scotland.
Africa’s largest economy and the world’s biggest platinum
producer has been hit by violent labour clashes that left 44
people dead at a Lonmin mine in Marikana and
froze production for the past two weeks.
Continued…
