Rand softer ahead of 2015 budget

The rand was under pressure against the dollar on Monday as investors' risk appetite remained tentative across the globe despite a rescue deal for debt-ridden Greece.

Traders and analysts predicted a potentially volatile week for the rand, with the release of domestic GDP and trade data as well as Finance Minister Nhlanhla Nene's budget speech on Wednesday.

At 08:55 the local unit was trading 0.31% softer at R11.6480 to the dollar after ending Friday's session at R11.6120.

In fixed income, the yield on the benchmark government bond maturing in 2026 was flat at 7.655%.

The market was eager to see how Nene proposes to boost revenue, given anaemic economic growth, traders and analysts said.

"Financial markets will no doubt remain on tenterhooks in the run up to the announcement given the further deterioration in economic conditions since National Treasury’s October update," said BNP Paribas Cadiz Securities analyst Jeffrey Schultz.

The economy has grappled with persistent shortfalls on its budget and current account since emerging from a 2009 recession, and this helped weaken the rand nearly 10% last year.

Greece's government prepared reform measures on Sunday to secure a financial lifeline from the eurozone.