Johannesburg - The rand on Monday opened the new month weaker against the dollar, extending steep losses triggered by poor trade numbers in the previous week, as a weekend rate cut by China's central bank kept up the pressure on the local currency.
By 08:15 the rand had softened 0.15% to R11.6725 per dollar, with the negative momentum fuelled by a yawning trade deficit revealed by data on Friday likely to keep the currency on the back foot against a bullish greenback.
READ: SA records a R24bn trade deficit for Jan
"The rand and local bonds remain under pressure from a rising dollar and poor local data," said John Cairns, a trader at Rand Merchant Bank, in a market note.
"January’s R24bn local trade deficit is the worst on record and, while the poor performance is partly seasonal, it is worrying that exports dropped so sharply," he added.
China cut deposit and lending rates on Saturday as the world's number two economy stepped up efforts to combat deflation and slowing growth, pushing the dollar index to 11-year highs as bets of a rate hike by the US Federal Reserve by mid-year gained traction.