JOHANNESBURG: The South African rand was slightly weaker in early trade on Monday, as the dollar recovered after slipping last week on bets on a nearing US rate cut.

At 0644 GMT, the rand traded at 18.1950 against the dollar , about 0.1% weaker than its previous close. The dollar last traded about 0.05% stronger against a basket of global currencies.

Economic data out of the US on Friday showed a slowdown in the job market in June and rising unemployment, adding to hopes of an interest rate cut as early as September which were boosted by softer-than-expected data earlier last week.

“Bets on a possible September rate cut have climbed, lifting risk sentiment in markets,” said Andre Cilliers, currency strategist at TreasuryONE.

“The rand is holding steady near Friday’s stronger closing levels… and we expect the local currency to stick within a R18.00/R18.40 trading range in the short term.”

South African rand slips against the dollar

With few major local economic data releases this week, the rand is likely to take cues from global drivers.

South Africa’s benchmark 2030 government bond was stronger in early deals, as the yield weakened 2.5 basis point to 9.735%.