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Johannesburg - The rand was steady against the dollar on Tuesday, with market participants saying it could benefit from a successful government bond auction later in the session.
The rand was at R9.8310/$ at 08:03, little changed from its close in New York on Monday.
After hitting the level of R10/$ on Friday, the rand recovered after weaker-than-expected US non-farm payrolls data and has since traded in a narrow range.
It is expected to remain rangebound in the absence of local data on Tuesday but could take its direction from mining and manufacturing production figures later in the week.
A government bond auction at 11:00 could also provide support for the rand, if demand is healthy.
The Treasury will issue R2.35bn ($238m) spread over 2031, 2037 and 2048 bonds.
"Foreigners have bought R6bn of SA bonds in recent weeks and these inflows have more than offset the simultaneous R3bn outflow from the equity market, which is reassuring for a country like SA which has considerable external funding requirements and thus rand supportive," Absa Capital analysts wrote in a note.
The yield on the 2026 government bond was flat at 8.08%, while that on the 2015 issue was down 2.5 basis points at 6.07%.
The rand was at R9.8310/$ at 08:03, little changed from its close in New York on Monday.
After hitting the level of R10/$ on Friday, the rand recovered after weaker-than-expected US non-farm payrolls data and has since traded in a narrow range.
It is expected to remain rangebound in the absence of local data on Tuesday but could take its direction from mining and manufacturing production figures later in the week.
A government bond auction at 11:00 could also provide support for the rand, if demand is healthy.
The Treasury will issue R2.35bn ($238m) spread over 2031, 2037 and 2048 bonds.
"Foreigners have bought R6bn of SA bonds in recent weeks and these inflows have more than offset the simultaneous R3bn outflow from the equity market, which is reassuring for a country like SA which has considerable external funding requirements and thus rand supportive," Absa Capital analysts wrote in a note.
The yield on the 2026 government bond was flat at 8.08%, while that on the 2015 issue was down 2.5 basis points at 6.07%.
