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South Africa's rand edges up in subdued early trade

Reuters logo Reuters 2017-09-11

South Africa's rand edged higher on Monday, regaining some of the ground it lost on Friday as traders positioned for another rally against a dollar weighed down by political tensions and Hurricane Irma.

At 0630 GMT the rand traded at 12.9300 per dollar, 0.08 percent firmer than Friday's close of 12.9400.

The rand has gained about 5 percent in the past 30 days as political tensions between the United States and North Korea simmered, benefiting from South Africa's role as a major exporter of safe-haven gold.

With no major data out in the session analysts said the rand looked set to drift in a narrow range, with focus shifting to local politics as a leadership contest in the ruling African National Congress (ANC) heats up.

Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg © REUTERS/Siphiwe Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

"All talk now focused on the apparently imminent cabinet reshuffle, as the president lays plans for the future. Possible trading range in the rand today 12.8000 to 13.1000," said Reezwana Sumad, chief analyst at Nedbank Capital.

Bonds weakened slightly, with the yield on the benchmark paper due in 2026 adding 1 basis point to 8.43 percent.

Stocks were set to open higher at 0700 GMT, with the JSE securities exchange's Top-40 futures index up 0.65 percent.

(Reporting by Mfuneko Toyana; editing by John Stonestreet)

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