Johannesburg - South Africa's rand weakened against the dollar on Monday and is likely to remain range-bound as long as the budget impasse in the United States continues.
The rand was at 10.0050 to the dollar at 08:35 SA time, down 0.3 percent from its close in New York on Friday.
It has traded in the 9.95-10.15 range in the past week as Democrats and Republicans failed to reach an agreement on ending the government shutdown.
The stalemate has raised doubts about the timing of the tapering of the Federal Reserve's bond-buying stimulus.
“The local unit continued to trade in a narrow range on Friday and we expect more of the same until US policymakers can break the deadlock that has caused parts of the US government to be non-operational for almost a week,” Absa Capital analysts wrote in a note.
Local data released on Monday showed that South Africa's net gold and foreign exchange reserves rose in September to $45.753 billion from $45.588 billion in August, but this had no apparent effect on the rand. - Reuters