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Johannesburg - The rand was slightly on the back foot against the dollar on Wednesday, with little scope for gains as investors remained nervous about the global fallout from a possible Greek debt default.
The local currency was trading at R12.1900/$ by 08:52, a 0.23% retreat from where it ended the New York session on Tuesday.
Government bonds were flat in early trade, and the yield for debt due in 2026, the market benchmark, was unchanged at 8.285%.
Market analysts said the rand would largely remain hostage to global market trends, with the greenback boosted by renewed expectations or a US rate hike later this year while Greece's debt problems restrained investors' appetite for risky assets.
READ: Greece's cash-for-reform proposals in a nutshell
"Rand gains are faltering as optimism over Greece peaks and on fears of early Fed hikes resurface," Rand Merchant Bank analyst John Cairns said in a note.
"Dollar/rand set the scene by moving sideways yesterday and we should expect the same today, with ranges from 12.12 to 12.24."
On the local front, investors are keeping an eye on public hearings for proposed electricity tariff hikes and wage negotiations in the gold sector, which is grappling with depressed prices, rising costs and falling production.
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