S.Africa's rand weakens ahead of data-filled week - CNBC Africa

S.Africa's rand weakens ahead of data-filled week

Financial

by Reuters 0

S.Africa's rand weakens ahead of data-filled week. PHOTOS: Real Pictures of Money

South Africa's rand was a shade weaker against the dollar early on Monday as traders contemplated a slew of local and global economic data due during the week.

At 0645 GMT the rand was trading 0.25 per cent lower at 12.1800 to the dollar, compared with its closing level on Friday.

(READ MORE: S.Africa’s rand weakens ahead of GDP, unemployment data)

"A very busy events calendar this week creates large risks for the rand and local bonds," John Cairns of Rand Merchant Bank said in a note.

"Friday undoubtedly holds the greatest risks for the local markets. The U.S. payrolls number will presumably be the biggest market mover, although we also think that the rand has probably not fully reflected the probable Fitch rating downgrade."

Fitch issues its ratings update on South Africa on Friday. The ratings agency maintained its BBB rating for South Africa in December last year.

Traders were also following talks between Greece and its creditors as the outcome is likely to impact on riskier emerging market assets.

(READ MORESouth Africa’s rand hovers near two-month low as economy weakens)

Athens and its euro zone and International Monetary Fund (IMF) creditors have been locked in talks for months on a reforms agreement. Without a deal, Athens risks default or bankruptcy in weeks.

South African government bonds weakened with the rand, and the yield for the 2026 benchmark up 2.5 basis points to 8.19 per cent.

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