S.Africa's rand weaker vs dollar, stock futures down
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S.Africa's rand weaker vs dollar, stock futures down UPDATED 05 Aug 2009 | 06:42  
S.Africa's rand weaker vs dollar, stock futures down

JOHANNESBURG (Reuters) - South Africa's rand weakened against the dollar on Wednesday and could see a further sell-off in the session, while stock futures pointed to a weak start on the bourse.

The JSE's blue-chip Top-40 September futures contract was down 0.33 percent ahead of the start of trade at 0700 GMT.

The rand was trading at 7.9030 against the dollar at 0635 GMT, 0.62 percent weaker than New York's close of 7.8575 on Tuesday.

"We could see some weakness in the rand possibly trading around 7.95 to almost 8/dollar," said a local trader.

"There are no major economic figures out ... it would just be pressure from the global perspective," he said, adding there was some consolidation after the rand hit an 11-month high against the dollar in late July.

Importer demand and concerns about strikes have also capped rand gains.

The National Union of Mineworkers said its members at power state firm Eskom could strike next week, and said it would shut down electricity across the country.

Workers at South African telephone group Telkom also said they would continue a strike into next week after unions walked away from talks to end the latest in a round of damaging industrial disputes.

South Africa's government bonds also weakened, with the yield on the 2015 bond up 6.5 basis points to 8.515 percent and that on the 2036 issue 8 basis points higher at 8.55 percent.

Bonds have sold off on fears the government might need to boost issuance in the coming 12 months to finance spending needs as the Treasury expects to fall short of its revenue target by up to 60 billion rand in this fiscal year.

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