Forex and bonds Pos­i­tive min­ing out­put gives rand a lift

The Star Early Edition - - MARKETS -

THE RAND edged slightly firmer against the dol­lar yes­ter­day after a sur­prise ex­pan­sion in min­ing out­put pro­vided a rare piece of good news for South Africa.

At 5pm the rand was bid at R11.1856 to the dol­lar, 1.26c firmer than at the same time on Wed­nes­day.

Yields on gov­ern­ment bonds were up, the bench­mark is­sue due in 2026 ris­ing after fall­ing to a week-and-a-half low on Wed­nes­day.

Min­ing out­put for Septem­ber rose by 5.3 per­cent boosted by plat­inum pro­duc­ers’ grad­ual re­turn to pro­duc­tiv­ity after a five-month work stop­page in the first half of the year forced the sec­tor to its knees.

The in­crease was bet­ter than an­a­lysts’ ex­pec­ta­tions and a Reuters poll an­tic­i­pat­ing a 3.4 per­cent year on year de­cline.

Ear­lier, Fi­nance Min­is­ter Nh­lanhla Nene told a business con­fer­ence that the pri­or­i­ties for the coun­try’s econ­omy were sta­bil­is­ing labour re­la­tions and in­creas­ing en­ergy sup­ply.

His re­marks come as sta­te­owned power util­ity Eskom in­tro­duced rolling black­outs for the sec­ond time this year at the start of the month.

Lack of re­li­able power sup­ply was one rea­son rat­ing agency Moody’s down­graded the coun­try’s credit sta­tus last Thurs­day.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.