Rand weakens as dollar recovers
The rand was trading 0,45 percent weaker at 11,8440 to the dollar compared with Monday's close at 11,7905.
JOHANNESBURG - The rand eased against a firmer dollar on Tuesday after a correction following the local currency's gains to its strongest level in more than a month in holiday-thinned trade on Monday.
At 1527 GMT the rand was trading 0,45 percent weaker at 11,8440 to the dollar , compared with Monday's close at 11,7905.
The local unit had climbed to 11,6950 on Monday but trading volumes were very low, with most participants, including those in South Africa, closed for the Easter holiday weekend.
"The dollar is a lot stronger today than it was yesterday so that's the real reason why the rand is a little bit weaker," said Ion de Vleeschauwer, chief dealer at Bidvest bank.
The dollar recovered against major currencies on expectations that the US economy's performance could beat forecasts after falling sharply in the aftermath of Friday's weaker-than-expected jobs data.
The jobs report had fuelled expectations that the Federal Reserve will postpone its first interest rate increase in nearly a decade, weakening the dollar.
On the local front, sentiment also took a knock after South Africa's power utility Eskom said it would cut 1,000 megawatts of electricity from 1400 GMT to 2000 GMT, citing a shortage of generation capacity.
Government bonds eased alongside the rand, with the benchmark paper due in 2026 shedding 2,5 basis points to 7,69 percent.