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Johannesburg - The rand edged lower on Monday, ending a recent rally built on positive emerging market sentiment and as traders looked ahead to a US interest rate decision later this week.
Stocks were due to open flat, with the JSE's Top 40 futures index inching 0.08% lower.
Famous Brands will be in focus after it said on Monday it will take a 51% stake in Lupa Osteria, an Italian restaurant business.
By 08:40 the rand had slipped 0.21% to R14.4300/$ after Friday's close at 14.4000 in New York.
Bonds were flat in early trade, with the benchmark bond due in 2026 unmoved at 9.065%.
The rand gained more than 2.5% against the dollar last week, breaking through key technical milestones on its way to 5-month highs before stumbling as global appetite for emerging assets eased.
Traders said the rand could resume gains if the Federal Reserve's policy statement is dovish on growth and signals the bank remains reluctant to raise lending rates.
"A holiday-shortened week will likely lead to a drop in trading volumes, especially today and tomorrow as no major data releases are scheduled," analysts at research firm NKC African Economics said in a note.
"However, US Fed meetings always have the potential to invigorate markets."
In the previous week the rand twice broke through the 14.2000 technical resistance mark but failed to hold below the level, and is unlikely to make progress this week in low liquidity conditions, traders said.
Markets will be closed on Wednesday for a national holiday.
