Johannesburg - South Africa's rand weakened slightly on Monday against a stronger dollar, although the currency did manage to hold below the crucial 11.000 mark ahead of a busy data week that should set its short-term course.
At 08:16 SA time the rand had eased 0.13 percent to 10.9490 per dollar from a New York close of 10.9380.
The rand remained in a range that has seen it trade below 11.000 since the finance minister's interim budget speech last Wednesday, where commitments to tighten government spending were well-received.
“Investors found some heart following last week's Medium-Term Budget Policy Statement's commitment to fiscal consolidation,” NKC Research said in a note to its clients.
The rand has managed to hold on to some of the gains that saw it touch month-lows against the dollar after the budget speech, but gave up some ground after improved sales of new houses boosted the US currency.
On Wednesday, South Africa's central bank releases money supply and private sector credit figures, while Thursday sees the release of unemployment figures together with producer inflation.
The week ends with trade balance figures on Friday, with a Reuters poll predicting the deficit will narrow to 12 billion rand from over 16 billion in August.
“The deluge of local economic data scheduled for this week will keep ZAR moving in a tight range until fresh direction is found,” NKC Research added.
Government bonds were flat, with yields on the benchmark issue due in 2026 unmoved at 7.91 percent. - Reuters