Johannesburg - The rand continued to weaken early on Tuesday, succumbing to thin liquidity ahead of a national holiday and modest appetite globally for emerging assets as investors await a rates decision in the United States.
By 08:45 the rand had slipped 0.23% to R14.4845/$ after trading as low as 14.5600 overnight, extending the previous session's losses that saw the unit fall as much as 1%.
Government bonds were slightly weaker, with the benchmark paper due in 2026 adding 1 basis point to 9.115%.
The unit has given up a recent rally towards key technical resistance around 14.0000, and now looks likely to hold above 14.6200 with scope for more weakening, traders said.
"The dreary rand outlook also reflects the global environment - international markets are in wait-and-see mode in front of the Fed," currency strategist at Rand Merchant Bank John Cairns said in a note.
The US Federal Reserve's policy committee is expected keep lending rates on hold on Wednesday, with market focus zooming in on any changes in the bank's tone, particularly if it looks to prepare markets for hikes in interest rates in coming months.
Stocks were due to open flat, with the JSE's Top 40 futures index up only 0.04%.
Rand - Dollar
19.10
+0.1%
Rand - Pound
23.78
+0.0%
Rand - Euro
20.44
+0.0%
Rand - Aus dollar
12.45
-0.4%
Rand - Yen
0.12
+0.1%
Platinum
924.90
+0.5%
Palladium
1,035.00
+0.9%
Gold
2,328.50
+0.3%
Silver
27.44
+0.5%
Brent Crude
88.42
+1.6%
Top 40
68,051
0.0%
All Share
74,011
0.0%
Resource 10
59,613
0.0%
Industrial 25
102,806
0.0%
Financial 15
15,897
0.0%
All JSE data delayed by at least 15 minutes
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