Rand softer against dollar, bonds mixed

Johannesburg - South Africa's rand softened against the dollar on Tuesday but was off session lows after data showed the labour market improving slightly after massive job losses brought on by the financial crisis.

News that Greece was drafting an agreement on a bailout deal that would be put before political leaders for approval later in the day also helped limit the rand's losses.

The rand hit a session low of 7.6003 to the dollar, which attracted exporter selling of dollars, helping the South African unit pick up off its lows.

The rand was trading at 7.57 to the dollar at 1545 GMT, 0.4 percent softer than Monday's New York close of 7.5420.

"The rand has remained between 7.50 and 7.65 as markets await the debt restructuring outcome for Greece," said Brigid Taylor, head of institutional sales at Nedbank.

"Gold is marginally weaker and equities are selling off, suggesting that the current range remains intact with potential for the rand to weaken initially from these levels," she added.

The rand is consolidating after hitting fresh 5-month highs at 7.52, and there is scope for moves towards 7.4650 in coming sessions, said IFR, a Thomson Reuters market analysis service.

It will likely maintain its gains as long as it does not breach support at 7.65, which could open up the way for a slide as far as 7.82.

Data from Statistics South Africa showed unemployment eased to 23.9 percent in the fourth quarter, although analysts said job creation was not fast enough to have a meaningful impact on unemployment.

Government bonds were mixed, with dealers saying the short end of the curve was becoming expensive and selling off slightly after strong gains late last week.

The yield on the 2015 bond was up two basis points to 6.53 and that on the 2026 note was unchanged from the previous close at 8.165 percent.