JOHANNESBURG (Reuters) – South Africa’s rand weakened in early trade on Monday, retreating from a five-week best hit in the previous session, as currency traders looked for direction from U.S.-China trade talks and updates on Brexit.
At 0640 GMT, the rand traded at 14.1300 per dollar, 0.28 percent weaker than its New York close on Friday.
The currency rallied as far as 14.0200 on Friday, its highest since Feb. 28, as slow wage growth in the United States helped maintain demand for emerging currencies.
“Rand marks time while waiting for direction,” Bianca Botes, corporate treasury manager at Peregrine Treasury Solutions, said in a morning note. “Currency markets continue to focus on the China-US trade talks and Brexit developments.”
On the domestic front, local focus this week is on February mining and manufacturing output data due out on Thursday.
Reporting by Naledi Mashishi; Editing by Raissa Kasolowsky