The Rand fell beyond a four-year low against the US Dollar and remains weak against the majority of its most traded peers after growing investor fears of further unrest in the South African mining sector were realised on Tuesday.
Miners held an illegal wildcat strike at a chrome mine in the northern region of Rustenburg as pay disputes threaten to plunge the South African mining sector back into the chaos seen last year where over 30 people were killed by police.
The latest incident saw a group of miners gather at the mine early in the morning and confront security personnel and threaten the mines managers. In response the security personnel retaliated by firing rubber bullets at the protestors.
Spokeswoman for the chrome mine, Sibonile Dube said; “A large group of employees attacked the management and the accompanying team of security guards in a very aggressive manner with stones.”
Ten of the protesting miners were wounded and taken to hospital.
The fresh labour tensions come as Africa’s biggest economy is facing slowing growth and higher inflation. That combination has driven investors to sell the currency, as well as bonds denominated in Rand. The rand is down 7% this month.
The Rand could make some recovering if the latest Consumer Price inflation data due for release later on Wednesday come in better than expected. The data will be keenly watched as it comes a day before the central bank announces a decision on monetary policy after three days of deliberations.
Economists are expecting inflation to slow to 5.8%.
Current South African Rand (ZAR) Exchange Rates
The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1047
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0809
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0691
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1070
(Correct as of 10:50 am GMT)
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