The rand declined for a ninth day, weakening to a four-year low, as violent protests at a South African chrome mine renewed concern that labor disruptions will cut mining output and slow economic growth.
The rand depreciated for a fourth day and bond yields jumped after a strike at a Lonmin Plc mine sparked concern of renewed labor unrest in an industry that accounts for more than half of South Africa’s exports.
South African Finance Minister Pravin Gordhan will have to do more than just keep a lid on spending to reassure investors spooked by the worst mining strikes since the end of apartheid, said economists from Johannesburg to London.
The rand gained, rebounding from a five-month low against the dollar, as technical indicators signaled its recent decline had come too fast. Bonds gained as investors trimmed expectations of an interest-rate increase.
The rand gained, headed for its first weekly advance in three, and yields fell to seven-month lows after the International Monetary Fund received new pledges to bolster its crisis-fighting fund, boosting risk appetite.
The rand strengthened for a second day and yields on South Africa’s nine-year bonds reached the lowest in two weeks after metal prices advanced as China eased reserve requirements, boosting export prospects for the world’s largest producer of platinum.
The rand declined for a fourth day, its longest losing streak in almost four months, on concern that Greece won’t conclude a debt-swap before tomorrow’s deadline, risking growth in Europe, South Africa’s main trading partner.