Rand muted ahead of interest rates

Johannesburg - The rand is likely to trade in a narrow range on Tuesday as a cautious market awaits consumer inflation data and the Reserve Bank's interest rate decision on Wednesday.

The rand was at R9.1790 to the dollar at 06:48 GMT, barely changed from Monday's New York close.

Doubts over whether lawmakers in Cyprus would approve a contentious bailout plan that will impose a levy on bank deposits have also kept global markets on edge.

Cyprus's parliament is due to vote on the plan later on Tuesday. The results of the vote could plunge the eurozone into a fresh crisis.

"The market has been pretty tentative ahead of MPC and the CPI this week, as well as the uncertainty with regards to what's happening in the eurozone, specifically around Cyprus," said Brigid Taylor, head of institutional sales at Nedbank.

Taylor expected the rand to remain within the R9.12 to R9.30 range ahead of the monetary policy committee's interest rate decision.

Government bonds were barely changed, with the yield on the 2015 issue flat at 5.405% and that on the 2026 paper 1 basis point higher at 7.41%.