File photo: Siphiwe Sibeko.

Johannesburg - The rand was steady against the dollar early on Friday, but traders were expecting volatility in the currency as investors awaited an outcome from Greek debt talks.

At 06h27 GMT the rand was trading at 11.6700 to the dollar, not far off its Thursday closing level of 11.6735.

“For all the discourse in the markets the rand is still solidly within the 11.45-11.75 range but this weekend could see this change pretty quickly with the Greece/EU deadline looming today and still no resolution,” Warrick Butler of Standard Bank said in a morning note.

“Range for the day could be quite erratic dependent on the headlines spewing forth from Europe.”

Germany rejected a Greek proposal for a six-month extension to its euro zone loan agreement on Thursday, saying it was “not a substantial solution” because it did not commit Athens to the conditions of its international bailout.

Immediate focus is on the euro zone finance ministers' meeting later on Friday and whether the differences can be ironed out.

Government bonds were mixed, with the yield for the 2026 benchmark up 1.5 basis points at 7.625 percent.