Rand weakens 1 percent in post-holiday slump, stocks flat

folarin okunola

December 29, 2015 6:46 PM

In the equities market, the JSE securities exchange's Top-40 futures index was up marginally, pointing to a flat open for the index at 0700 GMT.

The hand of Former South African Reserve Bank Governor Gill Marcus is seen holding South Africa's new rand banknotes - which feature an image of former president Nelson Mandela on the front in a file photo. REUTERS/Siphiwe Sibeko

South Africa's rand slipped more than 1 percent to its softest in two weeks early on Monday following the long Christmas weekend, as thin trade volumes globally and a firmer dollar erased the previous week's modest gains.

By 0645, the rand had softened 0.98 percent to 15.30 per dollar, after dipping more than 1 percent to its weakest level since Dec. 14.

The unit is due to drift lower with little domestically and abroad to drive trade as some markets remain closed on Monday.

READ: Rand, bonds steady in early trade

Government bonds were flat, with the benchmark paper due in 2026 adding 0.5 basis points to 9.54 percent.

South Africa's currency is on track to end 2015 close to 25 percent weaker against the dollar as economic fundamentals worsened over the last 12 months, exacerbated by the shock firing of the finance minister earlier in the month as well as lower global demand.

Traders expect the rand to come under some pressure this week with trade, credit and money supply figures due later in the week likely to show economic activity remains subdued.

folarin okunola