Johannesburg - South Africa's rand retreated early on Monday following firmer trade overseas, giving up its earlier momentum as markets fretted over global growth after data showed Chinese imports had fallen dramatically in January.
Trade figures from the world's number two economy, and a major export destination for South Africa, revealed a fourth straight month of declines, with imports plummeting 19.9 percent while exports also declined.
By 06h15 GMT the rand was 0.04 percent softer at 11.5050 per dollar, down form a 11.5000 close in New York and a brief stint around the 11.3000 mark in Asian trade.
Signs of continued weakness in the Chinese economy coupled with recent data affirming the resilience of the US economy's rebound has boosted the dollar and pushed investors to revisit bets of a delayed interest rate hike in the US.
“Eyes will be focused on whether the greenback can gather more momentum, especially with thoughts returned to the Fed hiking sooner rather than later again,” chief trader at Standard Bank Warrick Butler said in market note.
The rand is expected to test the upper range of 11.7000 in the week, although supports below that could hold, Butler added.
Yields on government bonds ticked up, with the benchmark paper due in 2026 adding 5 basis points to 7.48 percent.
Reuters