Publications
Partners
Johannesburg – The rand weakened slightly against the dollar on Monday as political tensions in Ukraine continued to drive global risk aversion.
The currency edged close to a week-high of R10.6250/$ before pulling back within its recent range, trading at R10.6680 by 08:44, down R0.16 from its New York close on Friday.
Government bonds were slightly stronger, with yields on the benchmark 2015 paper down 1 basis point to 6.695% and that on the 2026 bond dipping 1.5 basis points to 8.3%.
Investor uncertainty driving capital flows out of eastern Europe and into safer emerging markets such as South Africa remains a factor after hopes for a ceasefire in eastern Ukraine evaporated.
Traders expect the local unit to remain within a range of R10.50 and R10.80 ahead of domestic retail sales data on Wednesday and mining sales numbers on Thursday.
"Expectation of weak local data has been broadly priced in already," Christie Viljoen of NKC Independent Economists said in a market note to clients.
"Further deterioration in the situation in Ukraine and stand-off between Russia and the West could hurt emerging market currencies and send the South African currency to beyond R10.86 versus the dollar."
