Johannesburg - The rand traded weaker against the dollar early on Monday after the Federal Reserve's vice-chairperson suggested over the weekend that the United States may raise rates in September.
At 08:30 the rand eased 0.14% to R13.3275/$, extending losses to a third straight session following a modest recovery from last week's all-time low.
The unit collapsed to R14.00 versus the greenback last Monday on the back of a global stocks sell-off, triggered by concerns over China's slowing economy as well as the timing of rate hike in the US.
"The week ahead could be telling for the SA currency as market players turn their gaze away from China and back to US Fed," analysts at NKC African Economics said in a note.
The Federal Reserve's vice-chairperson said on Saturday inflation was likely to rebound as pressure from the dollar faded, allowing the bank to raise interest rates gradually.
Concerns of a "taper tantrum", similar to 2013 when investors pulled out of emerging markets after the US ended its massive bond-buying programme, look set to keep currencies in those economies on the back foot, traders said.
A slew of data from the US this week ending with employment numbers on Friday will be searched for clues on the Fed's next move.
Locally, trade data due later in the session is expected to provide opportunity to gauge South Africa's vulnerability to foreign portfolio outflows.
Yields on government bonds were higher in early trade, with the benchmark paper due in 2026 adding 2 basis points to 8.365%.
Rand - Dollar
19.03
-0.1%
Rand - Pound
23.79
+0.0%
Rand - Euro
20.41
-0.0%
Rand - Aus dollar
12.42
-0.2%
Rand - Yen
0.12
+0.3%
Platinum
930.40
+0.5%
Palladium
994.00
+0.4%
Gold
2,335.42
+0.1%
Silver
27.56
+0.5%
Brent Crude
89.01
+1.1%
Top 40
68,437
0.0%
All Share
74,329
0.0%
Resource 10
62,119
0.0%
Industrial 25
102,531
0.0%
Financial 15
15,802
0.0%
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