JOHANNESBURG: South Africa's rand edged lower against the dollar on Monday and is likely to be range-bound ahead of the release of local mining and manufacturing data later this week.
The rand was at 9.8510 to the dollar at 0655 GMT, down 0.2 percent from its close in New York on Friday.
Weaker-than-expected US non-farm payrolls data on Friday boosted risky assets such as the rand, which strengthened 1 percent as the numbers cast doubt on whether the Federal Reserve would start winding down its stimulus program as early as September.
A modest expansion in Chinese services PMI on Monday allayed fears about the economic health of China, South Africa's biggest trading partner, and could provide further support for the rand, analysts said.
However, the currency could come under pressure this week if local mining and manufacturing production data on Thursday prove disappointing. Strengthening economies in the developed world could also put the rand on the back foot.
"Emerging market economies remain under pressure while there are growing signs that developed economies are on firmer ground," economists at Rand Merchant Bank wrote in a note.
"Last week's much stronger than expected PMI data from the US and falling unemployment in the eurozone were further reminders of this development."
Government bond yields declined, falling 8 basis points on the 2015 issue to 6.1 percent and 6.5 basis points on the 2026 paper to 8.12 percent.
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