JOHANNESBURG (Reuters) -The South African rand weakened in early trade on Monday as global investors weighed how long the United States’ government shutdown will last and its potential impact.
The U.S. government has shut down much of its operations, potentially putting thousands of federal jobs at risk, after partisan divisions prevented Congress and the White House from reaching a funding deal.
The rand, which is often sensitive to shifts in global risk sentiment, traded at 17.2850 against the dollar at 0800 GMT, down about 0.2% on Friday’s close.
The dollar last traded 0.3% stronger against a basket of currencies.
Domestically-focused investors will eye gold and foreign exchange reserves data on Tuesday and manufacturing production figures on Thursday to gauge the health of Africa’s largest economy.
On the Johannesburg Stock Exchange, the Top-40 index was flat in early deals.
South Africa’s benchmark 2035 government bond weakened, as the yield rose 7.5 basis points to 9.22%.
(Reorting by Sfundo Parakozov;Editing by Joe Bavier)
