Johannesburg - The rand held steady against the US dollar early on Tuesday as it waited for direction from abroad, while lower oil prices and Japan's slip into recession supported government debt.
At 08:40 SA time the rand nudged up to 11.1175 to the dollar, off a 11.1345 close in New York on Monday.
The currency was trading within Monday's levels, with little on the domestic calendar to inspire moves in either direction.
Local factors will come into play from Wednesday, when South Africa releases inflation data, a day before the central bank announces its last scheduled interest rate decision of the year.
Analysts said with the market expecting the central bank to hold interest rates at 5.75 percent on Thursday, the rand would look for direction elsewhere.
“The global backdrop will continue to drive the direction of rand,” said Anisha Arora, emerging market analyst at 4Cast.
“We see some downside protection from importers, while the fundamental backdrop keeps dollar/rand a buy on dips.”
The rand is dogged by concerns about South Africa's unstable electricity supply, credit rating downgrades and budget and current account deficits.
Government bonds were steady at 7.855 percent on the benchmark 2026 issue.
Lower oil prices and Japan slipping into recession - which has fuelled the carry trade - are expected to continue supporting bonds. - Reuters