The European Central Bank (ECB) will offer this week, for the second time, an unlimited volume of cheap three-year loans to European banks, which could see the rand strengthen in tandem with the euro.

"It is going to be very euro dependent, whatever the euro does, (it will follow), if the euro pushes on to 1.3460-80, I think the rand will test 7.54-56," said Jim Bryson, a trader at Rand Merchant Bank.

The rand was trading at 7.6045 against the dollar at 0654 GMT, compared with Friday's New York close of 7.595.

Traders are also likely to watch final GDP number for 2011 which could also give a further outlook for interest rates in Africa biggest economy. Statistics South Africa releases economic growth data on Tuesday.

The National Treasury cut its 2012 economic growth forecast to 2.7 percent from an October projection of 3.4 percent, while it estimated 2011 growth at 3.1 percent.