Rand weakens in early trade

The rand weakened in early trade on Monday, pulled down by a firmer US dollar.

At 09:00, the rand traded at R18.20 against the dollar.

The US dollar made gains against other major currencies, with the dollar index up about 0.3% at 112.14.

This week, attention turns to the South African government’s mid-term budget. A Reuters poll published on Friday predicted the National Treasury would be able to trim this year’s projected budget deficit thanks to buoyant mining receipts.

Economists at ETM Analytics wrote in a note that traders would also have to navigate “market landmines” such as the UK’s leadership race, further escalation of the Russia-Ukraine war and economic data out of China.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 2.5 basis points to 11.000%.