"We were expecting a deficit‚ it was just the size of the deficit that we did not know. In addition we have month-end pressures as importers pay their bills‚" a local foreign exchange trader said.
In early trade the rand was bid at R9.7860 to the dollar from R9.7663 at Friday's (26 July) close and R9.7130 at Thursday's (25 July) close.
The local currency was bid at R12.9909 to the euro from its previous close of R12.9857 and was at R15.0534 against sterling from R15.0410. The euro was bid at US$1.3278.
RMB said in its morning report that there was large two-way risk to the rand in a data- and event-filled week so there is likely to be high volatility even though it is the Northern Hemisphere's holiday season.
"This week sees policy decisions from the US Federal Reserve Bank‚ Bank of England and European Central Bank. No major policy changes are expected but the markets are still looking for direction on future policy from all three. The most important of the lot is obviously the Fed's outline on how aggressive 'tapering' will be‚" the bank said.
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