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Rand softer as analysts ponder new cabinet

Johannesburg - The rand weakened slightly against the US dollar on Monday, opening the week on the back foot as investors analysed President Jacob Zuma's new cabinet and ahead of expected weaker economic growth data in the next session.

Zuma announced his new team for his second five-year term on Sunday, appointing former deputy finance minister Nhlanhla Nene as finance minister, while Pravin Gordhan moved to handle local government.

"The local cabinet is mostly business as usual but is less business-friendly than the market expected - or at least hoped," John Cairns, technical strategist at Rand Merchant Bank wrote to clients.

Rand trading was expected to be lacklustre as the United States and Britain were away for national holidays, dealers said.

At 08:48 the rand was down 0.2% to R10.3240 to the dollar, off a R10.3040 close in New York on Friday.

"With the US and UK enjoying a long weekend, we are settling for near-term extension of the recent consolidation in dollar rand," said Judy Padayachee, technical strategist at Barclays Africa.

"We continue to watch the 10.27 and 10.45 levels into month-end to provide direction," Padayachee added.

Economists have forecast data on Tuesday to show quarter-on-quarter GDP to fell 0.1%, from 3.8% growth in the fourth quarter of last year.

Yields on government bonds held steady at 8.05% on the benchmark 2026 issue and at 6.55% on the 2015 note.

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Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
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All Share
74,536
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Resource 10
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Industrial 25
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Financial 15
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