* Rand, bonds hit by more labour unrest worries
* More volatile trading expected in the week
By Vuyani Ndaba
JOHANNESBURG, Oct 8 (Reuters) – South Africa’s rand fell to
a 3-1/2 year low against the dollar on Monday and came close of
breaching the key 9.0 rand level as mining and other strikes
continued to shake investor confidence.
The rand was 1.5 percent weaker against the dollar
at 8.9186 at 1400 GMT, from New York’s Friday close of 8.79.
Bonds also took a hammering, with the yields rising as much
as 11 basis points to 5.53 percent on the three-year benchmark
, while that for the 2026 issue soared 24
basis points to 7.905 percent.
In mid-session, the rand fell to 8.995, its lowest since
April 2009, but then retraced its steps, prompting market talk
that the central bank may have been supporting the currency.
The bank did not respond to requests for comment. It has
repeatedly said it does not target a level for the currency.
Despite the support at 9.0, analysts say the rand is likely
to remain under pressure from investors nervous about the
prospects for Africa’s biggest economy as strikes rumble from
its platinum and gold mines into other sectors.
Continued…
