JOHANNESBURG: The South African rand strengthened on Monday, the first trading day of 2022, as an upbeat mood lifted assets globally.
At 1602 GMT, the rand traded at 15.8875 against the dollar, around 0.4% firmer than its previous close.
On global markets, U.S. and European equity markets powered higher in parallel with rising oil prices.
"The new year begins with markets favouring riskier currencies including the rand which has pulled back over the festive period," Warren Venketas, analyst at DailyFX, said in a research note.
South Africa's rand flat against dollar in thin trade
Among positive drivers, South Africa believes it has passed the peak of a wave of coronavirus infections caused by the Omicron variant.
The local economic data calendar is relatively light this week, with vehicle sales, a purchasing managers' survey and reserves figures among releases that are due.
The Johannesburg Stock Exchange, which started Monday well, had given up its gains by the close.
The blue-chip index of top 40 companies ended the day down 0.04% at 67,026 points and the All-share index up 0.02% at 73,723 points.
Both indexes had a strong run last year giving a return of around 23%, led by banks and mining companies.
Analysts say 2022's trajectory will be influenced by global inflation and its impact on interest rates, Chinese stimulus measures and the potential for new coronavirus variants.
In fixed income, the yield on the South African government's benchmark 2030 bond fell 1.5 basis points to 9.335%.
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