Rand hovers near 6-month low, bonds weak

The rand hovered near a six-month low early on Friday after slipping in the previous session following poor mining data and as power firm Eskom started controlled electricity outages because of a wage dispute with labour unions.

At 0817 GMT, the rand traded at 13.43 per dollar, 0.11% firmer than its close on Thursday, when it fell to a low on 13.48, its weakest since December 15.

South African assets have been hurt recently by weak economic figures and by global investors pulling back from emerging markets.

The wage dispute at Eskom has also soured sentiment. The utility implemented controlled power outages late on Thursday after hundreds of union members protested over wages and prevented others from showing up.

South Africa’s power grid was under pressure on Friday, with Eskom saying controlled blackouts were possible.

In fixed income, the yield for the benchmark government bond due in 2026 was up 7.5 basis points to 9.035%, reflecting weaker prices.