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Johannesburg - The rand climbed nearly 1% against the dollar on Monday, taking its cue from the firming of commodity-linked currencies although the potential for weakness remains due to the threat of mining strikes hanging over the economy.
The rand traded 0.76% firmer at R9.810 by 09:02 after ending Friday's session in New York at R9.885.
"The rand continues to trade around R9.75 to R10.00 so at least the range seems to be contracting slightly," Standard Bank trader Warrick Butler said in a client note.
"There certainly does seem to be a little pressure building for a move back through last week's lows of R9.774 and this could give the rand some respite to R9.66 and even R9.55, but I would expect that to be a slow grind."
In fixed income, government bonds also ticked higher and yields were inversely down from Friday.
The yield on the 2026 benchmark bond was 2 basis points lower at 7.855% and the 2015 issue dipped 2.5 basis points to 5.97%.
Despite recovering over the last few days, the rand is still down nearly 16% against the greenback to date this year, after a heavy sell-off in recent months as investors fretted about labour friction in mining that has slowed production of commodities for export.
The rand traded 0.76% firmer at R9.810 by 09:02 after ending Friday's session in New York at R9.885.
"The rand continues to trade around R9.75 to R10.00 so at least the range seems to be contracting slightly," Standard Bank trader Warrick Butler said in a client note.
"There certainly does seem to be a little pressure building for a move back through last week's lows of R9.774 and this could give the rand some respite to R9.66 and even R9.55, but I would expect that to be a slow grind."
In fixed income, government bonds also ticked higher and yields were inversely down from Friday.
The yield on the 2026 benchmark bond was 2 basis points lower at 7.855% and the 2015 issue dipped 2.5 basis points to 5.97%.
Despite recovering over the last few days, the rand is still down nearly 16% against the greenback to date this year, after a heavy sell-off in recent months as investors fretted about labour friction in mining that has slowed production of commodities for export.
