The rand weakened in early trade on Monday but pared some losses against the dollar as Asian shares mostly turned positive and the yen retreated, pointing to a slight easing in risk aversion.
But stock futures fell ahead of the 7am GMT Johannesburg open after Friday’s big fall on Wall Street and disappointment about the weekend’s Group of 20 meeting, which ended with few actual proposals on how they would combat a global recession.
The rand was trading at 10,13 versus the dollar at 6.45am GMT, 1,4% softer than its previous close but well off the session low of 10,3085 touched earlier.
The blue chip Top-40 December futures contract was 1,99% lower.
”A mixed bag … Wall Street futures are still marginally positive and Asian shares are up,” George Glynos, managing director of market analysts ETM, said.
”I think direction is really going to come from what Wall Street futures are doing today,” he said, predicting a 9,95 to 10,30 range for the rand on the day.
Wall Street’s Dow Jones futures index was last 0,16% up.
The dollar was stronger against the euro but off an earlier high, initially buoyed by risk aversion after the G20 left it to individual countries to take monetary and fiscal action to spur growth.
On the data front, United States industrial sector data was set for 2.15pm GMT.
Government bonds were largely flat, with the yield on the benchmark 2015 bond down 0,5 basis points at 8,805% compared to Friday’s close and the 2036 yield falling the same margin to 8,135%.
The yield on the two-year bond was 0,5 basis points lower at 9,22%. – Reuters