South African Rand Opens Flat, Global Factors in Driving Seat

The South African rand was little changed in early trade on Monday, with analysts saying global drivers including the Israel-Hamas conflict and U.S. economic data were likely to set the tone for trading this week.

At 0640 GMT, the rand traded at 19.0475 against the dollar , near Friday's closing level of 19.0325.

Rand Merchant Bank said in a morning briefing that the exchange rate had looked comfortable around 19 rand to the dollar but that rising U.S. Treasury yields risked pressuring the rand.

ETM Analytics said in a research note that investor concern that the conflict in the Middle East could spread was boosting demand for safe-haven assets.

"This means that the rand will be a price taker, with none of the domestic data scheduled important enough to override these international developments," ETM Analytics said.

Domestic data releases this week including a leading central bank indicator on Tuesday (ZALEAD=ECI) and producer inflation on Thursday (ZAPPIY=ECI), (ZAPPI=ECI).

South Africa's benchmark 2030 government bond was slightly stronger in early deals, the yield down 2 basis points to 10.780%.

Article and image originally by Reuters