JOHANNESBURG – The rand was largely unchanged in early trade on Monday, steadying after a strong run last week when dovish US Federal Reserve comments hit the dollar.

At 0700 GMT the rand was 0.02% weaker at R13.9575 to the greenback after strengthening to a two-week best on Friday as emerging markets were boosted by increased expectations of the US central bank cutting lending rates this year.

With little on the local data front, the rand has looked to offshore events for direction, and has seen volatile trade with swings in the dollar setting the tone.

The rand is expected to trade in the range of R13.80 to R14.10 against the dollar this session, NKC African Economics said.

Bonds opened firmer, with yield on the benchmark paper due in 2026 down 4.5 basis points to 8.755%.

Stocks were set to open stronger, with the Johannesburg Stock Exchange’s Top-40 index up 1.30% at 47,061 points.

EWN