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Johannesburg - The rand pulled back against the dollar on Monday after strong gains in the previous session and could extend losses this week if the country's current account deficit widens more than expected.
The ever-present threat of strikes will also keep investors wary about the outlook for economy, which has been beset by often violent wage-related union unrest, with more than 60 people killed in labour strife since last year.
By 08:46 the rand was 0.31% softer at R10.0305/$, coming off last week's three-week high of R10.00.
Government bonds held their ground in early trade, with yields dropping 2.5 basis points to 8.39% for the 2026 paper and three basis points to 6.31% for the paper due in 2015.
The rand rallied strongly on Friday after US jobs numbers came in below expectations, weakening the case for the US Federal Reserve to begin unwinding its monetary stimulus programme that has injected billions of dollars into emerging markets.
But domestic events could cap any further gains this week, with petrol station and car dealership workers planning to stay away from work on Monday as others workers in the auto manufacturing and gold mining sectors end their own strikes.
Added to that, economists expect a widening of the current account, a long-standing weak spot for the rand, when the South African Reserve Bank releases its second quarter bulletin on Tuesday.
