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Johannesburg - The rand weakened against the dollar on Monday, starting the week on the back foot ahead of events such as a US Federal Reserve meeting and domestic inflation data during a shortened week locally.
The Fed will hold a monetary policy meeting on Wednesday after Statistics South Africa releases February inflation and January retail sales data. Local markets will be closed for a national holiday on Friday.
Analysts expect that global developments will mainly drive the rand for most of the week, with investors watching political tensions in Ukraine and Russia, while the platinum sector strike rumbles on to its eighth week without much impact on day-to-day trading.
"Ahead of the local data, focus will be on the outcome of Sunday's Crimea referendum and potential economic sanctions from the EU/US against Russia," emerging market analysts at 4Cast said in a note.
The rand fell to R10.6900 to the dollar at 06:30 GMT, down nearly 0.2% from a R10.6700 close in New York on Friday.
"With euro/dollar 1.40 in sight, fresh five month lows for the dollar index will leave dollar/rand 10.64/5 the short-term target," 4Cast added.
The dollar index, a composite of six currency pairs, hit its lowest level since October last week.
Yields on government bonds were up half a basis point on the benchmark bonds on Monday, to 6.9% on the 2015 note and 8.535% on the 2026 issue.
The Fed will hold a monetary policy meeting on Wednesday after Statistics South Africa releases February inflation and January retail sales data. Local markets will be closed for a national holiday on Friday.
Analysts expect that global developments will mainly drive the rand for most of the week, with investors watching political tensions in Ukraine and Russia, while the platinum sector strike rumbles on to its eighth week without much impact on day-to-day trading.
"Ahead of the local data, focus will be on the outcome of Sunday's Crimea referendum and potential economic sanctions from the EU/US against Russia," emerging market analysts at 4Cast said in a note.
The rand fell to R10.6900 to the dollar at 06:30 GMT, down nearly 0.2% from a R10.6700 close in New York on Friday.
"With euro/dollar 1.40 in sight, fresh five month lows for the dollar index will leave dollar/rand 10.64/5 the short-term target," 4Cast added.
The dollar index, a composite of six currency pairs, hit its lowest level since October last week.
Yields on government bonds were up half a basis point on the benchmark bonds on Monday, to 6.9% on the 2015 note and 8.535% on the 2026 issue.
