Rand ticks slightly up in sluggish trade

The local unit was up just 0,2 percent against the dollar, compared with Friday’s close.

Slow movement in the markets left the rand only slightly stronger against the US dollar. Picture: Craig Wynn/EWN.

JOHANNESBURG - The rand was largely flat against the dollar in a quiet Monday session that reflected a dearth of market-moving economic data and news.

The local unit was up just 0,2 percent at 10,6210 versus the greenback by 4:41pm, compared with Friday's close.

"Global FX markets are really in the summer doldrums as we call it. Markets tend to be very lacklustre this time of the year because of the European summer," Bidvest Bank chief dealer Ion de Vleeschauwer said.

"It's really slow going and that is why the rand has been very dead. There has been continued demand from importers in the lower 10,60's though, and that's what's stopping it from strengthening sub 10,60."

Traders expected trade to pick up later in the week, with the release of key data including consumer inflation on Wednesday.

Government bonds pulled back from last week's strong gains which were prompted by the central bank raising interest rates by 25 basis points.

Inversely, the yield for the 2026 benchmark added 5 basis points to 8,12 percent while that for the 2015 instrument was up 6 basis points to 6,655 percent.

"The market has come to terms with the rate hike, and some guys are thinking there could be another increase on the cards this year," a Johannesburg bond trader said.