The Rand remains trading close to a 4-year low against the US Dollar, and is weaker against the majority of its most traded peers as investors remain nervous over the possibility of future labour unrest in South Africa’s mining sector.
The Rand could fall beyond the 4-year low mark over the next few weeks as a confrontation is expected between employers and the militant trade unions of the mining sector. Violence has been common place in the sector as rival trade unions often clash over possible members and pay disputes. Last year saw a number of violent clashes between the rival groups and police, including the police killing of 34 miners last August.
Tension is mounting as looming job cuts, wage talks and the union’s rivalry escalate.
The National Union of Mine-workers has said that its workers are seeking a pay rise of up to 60%. The demand could spark further violence in the troubled mining sector as mining firms are almost certain to refuse such a hike as they battle higher costs and falling commodity prices.
“The mounting domestic labour tensions, which plagued the Rand last week and caused foreigners to offload 1.3 billion($138.52 million) worth of their South Africa bond holdings over the past week, appear to be intensifying,” said Absa Capital in an investor note, referring to the NUM’s 60% wage demand.
The next big movement for the Rand will come on Wednesday with the release of the nation’s latest inflation data and on Thursday when the South African Central Bank announces its interest rate decision.
Current South African Rand (ZAR) Exchange Rates
The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1064
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0827
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0700
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1088
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.3919
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.2758
The Euro/South African Rand Exchange Rate is currently in the region of: 12.0901
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1870
(Correct as of 10:30 am GMT)
Comments are closed.