South African rand recovers to edge higher against dollar

JOHANNESBURG (Reuters) -The South African rand was up slightly against a weakening dollar on Monday after slipping earlier in the day amid uncertainty about the outlook for U.S. Treasury yields and interest rates.

The rand was over 0.2% stronger than its last close at 1558 GMT, at 18.5600 against the dollar, after slipping as much as 0.7% earlier in the day.

The dollar last traded around 0.08% weaker against a basket of global currencies as investors await a slew of U.S. economic data scheduled for later this week for more clues on interest rate outlook.

The risk-sensitive rand often takes cues from global factors, such as U.S. monetary policy, in the absence of local economic drivers.

Local data releases this week include July money supply, private sector credit and budget numbers on Wednesday, and July producer inflation and trade figures on Thursday.

On the Johannesburg Stock Exchange, the blue-chip Top-40 closed 1.77% higher while the broader all-share index closed nearly up 1.7%.

South Africa’s benchmark 2030 government bond was stronger, with the yield up 5 basis points at 10.160%.

(Reporting by Tannur Anders and Bhargav Acharya; Editing by Conor Humphries)