JOHANNESBURG: South Africa's rand edged up slightly against the dollar and government bonds were also firmer in what looked to be a quiet Monday session with many market players taking year-end breaks.
The yields for the benchmark 2026 note and the 2015 paper were each down 4 basis points at 8.155 percent and 6.05 percent respectively. By 0718 GMT, the rand was trading 0.22 firmer at 10.3375 against the dollar compared with Friday's close at 10.3600.
The local currency is on track for a 22 percent loss against the dollar this year, with sentiment being buffeted for most of 2013 by strikes that hit output in the key mining and manufacturing sectors.
The rand hit a two-week trough of 10.4750 per dollar last week, as investors sold high yielding but riskier emerging market assets in the wake of the U.S Federal Reserve's decision to begin scaling back its stimulus in January.
The bank's $85 billion a month asset purchases have been a key source of dollar inflows into emerging markets.
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