The rand was softer in subdued trade on Monday afternoon, with event risk for the rest of the session largely limited.
“It’s been very quiet this afternoon,” a Johannesburg-based trader said. adding that the rand was very much in a “consolidation phase” confined within the R11.07/$-R11.22/$ range.”
“The bigger picture hasn’t really changed though,” he said, referring to SA’s weak fundamentals, including a wide current account deficit, continued labour unrest, as well as the effects of reduced US monetary easing that affected the country given its emerging-market status.
At 3.36pm, the rand was at R11.1083 to the dollar from its previous close of R11.0577. The local unit weakened as far as R11.16/$ during the session amid a firmer dollar environment.
Against the euro, the rand was at R15.1456 from Friday’s close of R15.0615 and was at R18.2157 against the pound from a close of R18.1505.
The euro was at $1.3636 from $1.3618 on Friday.
Investors are expected to tune into new US Federal Reserve chairwoman Janet Yellen’s testimony to Congress on Tuesday and Thursday for hints on the central bank’s policy, especially its forward guidance, Dow Jones Newswires reported.
It is anticipated this will guide currency markets, but the consensus for the rand is that it will remain weak in the next few days.