The rand weakened steadily on Wednesday, pushed mainly by news that Eskom workers have begun preparing for a strike as early as Monday.

At 3.46pm the rand was bid at 7.9608 to the dollar from a previous close of 7.8167. It was bid at 11.4520 to the euro from a previous 11.2868 and at 13.5315 against sterling from 13.2420.

The euro was bid at US$1.4391 from US$1.4397 overnight.

A local trader said: "We are trading at a crucial level of 7.95, near the day's highs. If we are close to that mark by the close of play, we might see the rand push through to about 8.05 against the dollar.

"Eskom news seemed to be the major driver, with little action from the euro today," the trader said.

Dow Jones Newswires reports that currencies are little changed on Wednesday from day-earlier levels ahead of a key US employment report later this week.

Analysts say such consolidation is to be expected ahead of the European Central Bank and Bank of England policy meetings Thursday. In addition, the highly anticipated US non-farm payrolls report is due Friday.

The pace of layoffs may be easing. Private-sector jobs in the US fell 371 000 in July, according to a national employment report published Wednesday by payroll giant Automatic Data Processing Inc and consultancy Macroeconomic Advisers.

The expected loss compares with the 350 000 drop in the ADP survey projected by economists in a Dow Jones Newswires survey. ADP revised its June job loss figure to 463 000, down from 473 000 first reported.

"There are several key events over the next couple of days...and after a relatively sharp run in a short period and the proximity of key levels, some position-adjusting should not be surprising," said Brown Brothers Harriman currency analysts.

They noted that the consolidation seen across financial markets implies that any positive news likely to come out of those events may be priced in now.

Weak rand weighs bonds down

Bonds lost further ground during the afternoon session on Wednesday in line with the weak rand. Negative bias had already set in on lack of risk appetite for emerging markets and increased issuance.

By 3.49pm the short-term government R153 bond was at 7.900 percent from 7.800 percent at it previous close. The medium-term R157 was at 8.550 percent from 8.435 percent, while the long-term R186 was at 8.970 percent from 8.865 percent before.

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