The South African Rand remains under pressure against the US Dollar after the currency fell sharply overnight as investors continued to be concerned that a two-day long strike at platinum firm Lonmin could lead to further worker unrest over the next few months.
The Rand ended Wednesday’s trading session at the R.2630 level before tumbling overnight to hit a low of 9.3255, the currency’s weakest level since March.
The current situation at the Lonmin mines seems to be dissipating as the company said that 86% of its workforce reported for work at yesterdays morning shift, suggesting that the wildcat strike which had sparked investor concern is now over.
Moody’s analysts said on Wednesday that renewed labour unrest in the mining industry after violent protests last year hit output and left more than 50 people dead could hit export competitiveness and threaten South Africa’s credit rating.
“Global markets are watching us and are remaining quite sensitive with regards to further support of South Africa,” said Brigid Taylor, head of institutional sales at Nedbank.
The Rand is also being weighed down by investor concerns that the global economy is slowing down. Disappointing data out of the USA and Europe has weighed down upon commodity prices adding to the weakening of the Rand.
Current South African Rand (ZAR) Exchange Rates
The South African Rand/US Dollar Exchange Rate is currently in the region of: 0.1073
The South African Rand/Euro Exchange Rate is currently in the region of: 0.0835
The South African Rand/Pound Sterling Exchange Rate is currently in the region of: 0.0705
The South African Rand/Australian Dollar Exchange Rate is currently in the region of: 0.1094
The US Dollar/South African Rand Exchange Rate is currently in the region of: 9.3173
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 14.1694
The Euro/South African Rand Exchange Rate is currently in the region of: 11.9745
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.1381
(Correct as of 10:25 am GMT)
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