JOHANNESBURG: The South African rand edged up in early trade on Monday, building on gains from the previous week, but trading was expected to be cautious this week ahead of several major global monetary policy decisions.

At 0632 GMT, the rand traded at 18.6900 to the dollar, about 0.2% stronger than its closing level on Friday.

The dollar was flat against a basket of global currencies.

Policy meetings of the US Federal Reserve, the European Central Bank and the Bank of Japan will set the tone for the week, as markets seek clues from policymakers on the future path of interest rates.

South African rand flat before current account, manufacturing data

The rand gained more than 4% against the dollar last week as an easing in power cuts and some encouraging economic data helped it recover some of its steep losses in May.

Investors will wait for guidance from the Fed meeting’s outcome on Wednesday before adopting any fresh direction, said ETM Analytics in a research note.

South Africa’s benchmark 2030 government bond was stronger, with the yield down 2.5 basis points to 10.795%.