* Bonds retreat, yields edge up
* Wage strike talks collapse
JOHANNESBURG Oct 11 (Reuters) – South Africa’s rand edged
up against the dollar on Thursday on tentative hopes of a
resolution to the strikes that have wreaked havoc particularly
in the key mining sector in the past two months.
But no firm agreements have emerged from the wage talks yet,
which may keep the local currency vulnerable for another retreat
towards the 9.00 level after a heavy sell-off took it to a 3-1/2
low of 8.995/dollar on Monday.
By 1601 GMT the local unit was trading at 8.7070
to the dollar, 0.36 percent tighter than its 8.7385 close in New
York.
It was also buoyed by a stronger euro, currency of South
Africa’s largest trading bloc partner, which extended gains
against the dollar on encouraging comments from the head of the
International Monetary Fund.
With investors worried about the impact on the economy of
strikes which have seen almost 100,000 workers downing tools –
often illegally – since August, market watchers did not see a
sustained rally for the rand.
“The rand is still trading in murky waters at the current
levels,” said Paul Chakaduka, a dealer at Global Trader.
“If it continues to trade above 8.70 we could break through
the 9 rand level.”
Central Bank governor Gill Marcus said this week the
domestic economic outlook was “deteriorating rapidly”, with the
labour unrest likely to lead to job losses.
Government bonds were weaker on Thursday, and the yield on
the benchmark 2015 bond added 3 basis points to 5.42
percent while that for the 2026 issue gained 7 basis
points to 7.76 percent.
(Reporting By Tshepo Tshabalala)
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