The rand traded at 8.58 at 0725 GMT, up just 0.23 percent from Friday's close at 8.60.

But the greenback was steady to firmer against major currencies as the year-end deadline approached to reach a deal to halt going over the fiscal cliff.

Economists say the harsh tax increases and budget cuts could thrust the world's largest economy back into a recession, unless Congress acts quickly to ease the economic blow.

South African government bonds were flat in a lacklustre session as most market players took the day off ahead of the Christmas holiday.

The yield on the 14-year issue, which is the market benchmark, was unchanged from Friday's last level at 7.225 percent, as was that for the three-year issue at 5.3 percent.

"The market is open but no one has put up a price yet. There are brokers out there but there hasn't been a trade," said Kgosi Tshite, a bond trader at Investec.

Center>Copyright Reuters, 2012