Rand value at risk over mass strikes and lawlessness | Gut Feel

The Rand value loses ground as the week gets under way and remains under extreme pressure as the global focus is on the strike action. It would appear that the municipal workers are also looking forward to some unofficial down time.
The market trends mirrored the unrest with major disinvestment and hence the 9% weakening of the Rand value. With these factors in mind the price action leaned towards a weakening rand which was short-lived. Followed by a rapid move higher to touch 8.9950 to the Dollar.
I believe that sanity will prevail and the long positions together with export proceeds will see the Rand regain some of its losses.

[box]Rand value remaining under extreme pressure as the global focus remains on the strike action[/box]

Risk and Volatility will still be in the markets while disinvestment continues.

The rand value rebounded to R8.74 to the dollar from R8.84/$1 in early morning trade. This following news that members of the transport unions engaged in industrial action will return to work on Wednesday.
This relief comes after the rands value reached R9.00 to the Dollar on Monday due to mining woes and investor jitters.
The rand is sentiment focussed as news of 15‚000 freight workers returning to work on Wednesday hits the wire. This provided temporary relief to rally the rand. Local traders believe that if a peaceful resolution to the mining strikes returns miners to work‚ it would be good news for the rand.
The trade union Satawu is still on strike. If the strike hits the ports, we will once again have a massive impact on all our imports and exports. Ultimately this could cause further offshore investor jitters.

Gut Feel

My gut feel is there will be some rand losses regained and a nervous wait to see what happens with the mining sectors negotiations.

Currency Values against the Rand