Rand softer in early trade

File photo: Nadine Hutton.

File photo: Nadine Hutton.

Published Jun 1, 2015

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Johannesburg - South Africa's rand was a shade weaker against the dollar early on Monday as traders contemplated a slew of local and global economic data due during the week.

At 06h45 GMT the rand was trading 0.25 percent lower at 12.1800 to the dollar, compared with its closing level on Friday.

“A very busy events calendar this week creates large risks for the rand and local bonds,” John Cairns of Rand Merchant Bank said in a note.

“Friday undoubtedly holds the greatest risks for the local markets. The US payrolls number will presumably be the biggest market mover, although we also think that the rand has probably not fully reflected the probable Fitch rating downgrade.”

Fitch issues its ratings update on South Africa on Friday. The ratings agency maintained its BBB rating for South Africa in December last year.

Traders were also following talks between Greece and its creditors as the outcome is likely to impact on riskier emerging market assets.

Athens and its euro zone and International Monetary Fund (IMF) creditors have been locked in talks for months on a reforms agreement. Without a deal, Athens risks default or bankruptcy in weeks.

South African government bonds weakened with the rand, and the yield for the 2026 benchmark up 2.5 basis points to 8.19 percent.

Reuters

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