Rand softer in early trade

Photo: Siphiwe Sibeko

Photo: Siphiwe Sibeko

Published Jun 15, 2015

Share

Johannesburg - South Africa's rand weakened against the dollar early on Monday as demand for riskier assets waned after the latest talks aimed at ending Greece's debt crisis ended without a resolution.

At 06h15 GMT the rand was trading 0.46 percent weaker at 12.4350 to the dollar compared with its New York closing level on Friday.

“The rand is at risk of renewed weakness this week given the fears over Greece and caution in front of the (US Federal Reserve) meeting,” John Cairns of Rand Merchant Bank said in a note.

European Union officials blamed the collapse of debt talks on Athens, which it said had failed to offer any new concessions to secure funding it needs to repay 1.6 billion euros ($1.79 billion) to the International Monetary Fund.

The Fed's policy-setting committee will hold a regular meeting on Tuesday and Wednesday this week and is expected to leave interest rates on hold.

But the market will be focusing on policymakers' comments for clear signals on when the US central bank will make its first interest rate hike in nearly a decade.

On the domestic front, May consumer price inflation and April retail sales data were due to be released on Wednesday.

In fixed income, the yield for the 2026 benchmark was flat at 8.360 percent.

Reuters

Related Topics: