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Johannesburg - The rand fell against the dollar in early trade on Wednesday, on track to extend three days of losses ahead of domestic trade account data and a Federal Reserve policy review.
The rand was at R9.8380/$ at 08:09, 0.23% weaker than its close in New York on Tuesday.
The currency has been under pressure in recent sessions as importers have been selling to settle offshore payments at month end.
The local trade account in June is expected to have narrowed to R9.1bn ($928m), from R11.03bn in May.
If the trade data comes in worse than expected at 14:00, the local unit is likely to weaken past Tuesday's low of R9.8890.
A big trade shortfall puts the rand under pressure because it raises concerns about the financing of the current account, especially given the uncertainty about whether easy money flows from developed markets such as the United States will continue.
While a weaker rand should gradually help to curb imports and support the trade position, analysts say a sharp improvement in exports is still needed to show a meaningful change in the account.
"It's clear that the devalued rand has not yet had the hoped for impact in the form of boosting exports, as structural and competitiveness problems continue to weigh on domestic trade," said Anisha Arora, emerging market analyst at 4Cast.
"Consequently our outlook for total 2013 trade remains uninspired, especially as any potential for gradual improvement in domestic demand is likely to increase import volumes further, before the European recovery can enhance export demand."
Yields on government bonds dropped 2.5 basis points to 8.16% on the 2026 benchmark issue.
National Treasury will announce issuance plans for next week's bond sale at 11:00.
Investors will also keep an ear out for a speech by central bank Governor Gill Marcus on employment and economic growth at 09:00.
The US Federal Reserve will release a policy statement at 20:00, without a news conference by Chairperson Ben Bernanke.
The rand was at R9.8380/$ at 08:09, 0.23% weaker than its close in New York on Tuesday.
The currency has been under pressure in recent sessions as importers have been selling to settle offshore payments at month end.
The local trade account in June is expected to have narrowed to R9.1bn ($928m), from R11.03bn in May.
If the trade data comes in worse than expected at 14:00, the local unit is likely to weaken past Tuesday's low of R9.8890.
A big trade shortfall puts the rand under pressure because it raises concerns about the financing of the current account, especially given the uncertainty about whether easy money flows from developed markets such as the United States will continue.
While a weaker rand should gradually help to curb imports and support the trade position, analysts say a sharp improvement in exports is still needed to show a meaningful change in the account.
"It's clear that the devalued rand has not yet had the hoped for impact in the form of boosting exports, as structural and competitiveness problems continue to weigh on domestic trade," said Anisha Arora, emerging market analyst at 4Cast.
"Consequently our outlook for total 2013 trade remains uninspired, especially as any potential for gradual improvement in domestic demand is likely to increase import volumes further, before the European recovery can enhance export demand."
Yields on government bonds dropped 2.5 basis points to 8.16% on the 2026 benchmark issue.
National Treasury will announce issuance plans for next week's bond sale at 11:00.
Investors will also keep an ear out for a speech by central bank Governor Gill Marcus on employment and economic growth at 09:00.
The US Federal Reserve will release a policy statement at 20:00, without a news conference by Chairperson Ben Bernanke.
