South African rand weakens in early trade

JOHANNESBURG: South Africa’s rand weakened in early trade on Monday, pulled down by a firmer US dollar.

At 0636 GMT, the rand traded at 18.1650 against the dollar, 0.3% weaker than its previous close. The US dollar made gains against other major currencies, with the dollar index up about 0.3% at 112.14.

This week, attention turns to the South African government’s mid-term budget.

A Reuters poll published on Friday predicted the National Treasury would be able to trim this year’s projected budget deficit thanks to buoyant mining receipts.

South African rand slips in early trade on firm dollar

Economists at ETM Analytics wrote in a note that traders would also have to navigate “market landmines” such as the UK’s leadership race, further escalation of the Russia-Ukraine war and economic data out of China.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 2.5 basis points to 11.000%.