By Agency Reporter

Tuesday, 7 Dec 2010

South Africa‘s rand weakened slightly against the dollar on Monday after touching a three and a half week high on Friday, but upside at 6.75 remains a target if last week‘s late rally resumes.

At 0644 GMT, the local currency was at 6.8725 to the dollar, 0.26 per cent off Friday‘s close at 6.855, Reuters said.

”Dollar/rand has been quite volatile of late. I think there‘s quite a big level at 6.85. If it goes through that it could go even lower; 6.75-ish should be the next target,” a Johannesburg trader said, adding that, ”But we expect it to trade in a range, mostly between 6.85 and 6.95 for today.”

Government bonds were at Friday‘s closing levels, with yields on 2015s and 2026s flat at 7.33 per cent, 8.335 per cent, respectively.

The local bourse looked set to open slightly higher, with the blue chip Top-40 December futures contract up 0.32 per cent prior to the 0700 GMT start of trade on the Johannesburg Stock Exchange securities exchange.

Source: Punch