Rand treads water in pre-holiday trade

South Africa’s rand held steady against the dollar in early trade on Monday as investors refrained from making bets ahead of the Christmas holiday break.

The rand strengthened 0.15% to 14.2630 versus the greenback by 0629 GMT, remaining near a four-and-a-half-month high hit last week after Fitch affirmed the country’s sovereign rating.

Fitch on Wednesday affirmed South Africa’s long-term foreign and local currency debt ratings, helping lift the rand to 14.26, its highest level since July 31, against the backdrop of broadly positive global sentiment.

Government bonds were slightly weaker, with the yield on benchmark 2026 instrument up 0.5 basis points to 8.250%.