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Johannesburg - The rand eased within a recent range early on Tuesday, tracking a weaker tone in emerging markets as geopolitical concerns pushed investors toward safe-haven assets.
The currency fell to a session low of R10.6730 at 08:36, down more than 0.4% on its previous close, although that was still within Monday's trading range.
The rand is expected to stay within recent levels as dealers see little in the domestic calendar to provide trading opportunities until the release of retail sales data on Wednesday.
Investors will also be watching the Ukraine-Russia crisis, a key driver of global risk appetite in recent weeks.
Easing political tensions could boost the rand and other emerging market currencies seen as riskier assets, although the local unit tends to underperform its peers.
Dealers are leaning towards a more bearish outlook for the rand in the short-term, with the dollar index continuing to rise.
The rand should find initial support at Monday's low of R10.7175, dealers said.
Yields on government bond yields were flat at 8.32% on the benchmark 2026 issue and at 6.715% on the paper due next year.
Dealers expect sideways movements until around 11:00, when the National Treasury closes its weekly fixed income sale.
The Treasury has offered R2.35bn between its 2032, 2037, and 2044 bonds. Dealers are expecting a decently supported auction, with results due after 11:00.
