Pressure mounts against strong Rand

Gordhan added that a protracted public service strike would not have a big impact on Africa's largest economy, as more than 1 million civil servants took to the streets seeking higher wages, worrying investors and putting pressure on the government to reach a deal.

The rand last week hit a 2-1/2-year high of 7.1740 against the dollar last week, partly benefiting from increased inflows into the bond market, but it has since lost steam. By 1211 GMT, the currency was trading at 7.2650/dollar.