Publications
Partners
Johannesburg - The rand inched lower against the dollar on Monday, pulling back from three-week highs as investors held-off bets and took in profits ahead of domestic and overseas GDP data later in the week.
Local growth numbers, due on Tuesday at 09:30 GMT, are expected to show a 1.5% expansion in the third quarter, up from 0.6% in the previous quarter but well below the government's target of 4% annual growth.
By 15:09 GMT the rand had slid 0.3% to 10.9830 per dollar, from a New York close of 10.9505, underperforming the emerging market currency index which gained on news of China's surprise interest rate cut on Friday.
The rand's recent rally to below the crucial 11.000 mark will be tested by offshore events.
Market watchers expect the release of US GDP data on Tuesday to show the world's number one economy remains on track for recovery, raising the likelihood of interest rate hikes.
"The rand did react favourably to the Chinese rate cut but that is out of the way now," said David Gracey, a currency trader at Investec Asset Management.
"We must also be aware the Sarb (central bank) last week said they're focusing on the US cycle," he added, saying that the eurozone's intensified stimulus measures would not necessarily fill the void left by the end of the US bond-buying programme.
Government bonds were also softer, with the yield on the benchmark issue maturing in 2026 up 1.5 basis points to 7.74%.
