JOHANNESBURG: The South African rand firmed against the dollar in early trade on Tuesday in range-bound trading due to a U.S. holiday and lack of local economic data points.
At 0632 GMT, the rand traded at 18.7000 against the dollar, around 0.5% stronger than its previous close.
The dollar last traded at 102.940, around 0.02% weaker, against a basket of global currencies.
The rand traded largely sideways on Monday and the July 4 holiday in the United States is expected to constrain trade, said Rand Merchant Bank analysts in a research note.
South African rand steady in early trade
Bigger moves could come when the U.S. Federal Reserve releases its June meeting minutes on Wednesday, said analysts at ETM.
Like other emerging market currencies, the risk-sensitive rand often takes cues from global drivers such as the dollar, in the absence of local catalysts.
South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 10.505%.
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