Johannesburg - The rand was slightly weaker against the dollar on Thursday and could come under pressure if mining and manufacturing data due out later come in softer than expected.
The rand was at R9.9825/$ at 07:42, down 0.2% from Wednesday's New York close.
It is expected to continue trading in the R9.90 to R10.10 range as long as the US budget impasse, now in its tenth day, remains unresolved.
Investors were hopeful on Thursday that policymakers were inching closer to a deal to end the government shutdown and increase the government's borrowing authority before an October 17 deadline.
Closer to home, poor August mining and manufacturing data could weigh on the rand. Manufacturing production is expected to have declined in August, reflecting the impact of strikes by car manufacturers that began that month.
"The rand has been afforded some breathing room this month owing to what has been a very steady weakening trend on the dollar. However, the dollar index is now showing signs of making a rebound on hints of compromise between US Congressional leaders," Tradition Analytics wrote in a research note.
"Rand risk also presents itself ahead of today's South African mining and manufacturing data."
The yield on the 2015 government bond fell 2 basis points to 6.05% while that on the 2026 instrument inched up 1 basis point to 8.035%.
The rand was at R9.9825/$ at 07:42, down 0.2% from Wednesday's New York close.
It is expected to continue trading in the R9.90 to R10.10 range as long as the US budget impasse, now in its tenth day, remains unresolved.
Investors were hopeful on Thursday that policymakers were inching closer to a deal to end the government shutdown and increase the government's borrowing authority before an October 17 deadline.
Closer to home, poor August mining and manufacturing data could weigh on the rand. Manufacturing production is expected to have declined in August, reflecting the impact of strikes by car manufacturers that began that month.
"The rand has been afforded some breathing room this month owing to what has been a very steady weakening trend on the dollar. However, the dollar index is now showing signs of making a rebound on hints of compromise between US Congressional leaders," Tradition Analytics wrote in a research note.
"Rand risk also presents itself ahead of today's South African mining and manufacturing data."
The yield on the 2015 government bond fell 2 basis points to 6.05% while that on the 2026 instrument inched up 1 basis point to 8.035%.