The rand struggled to sustain a push above R11 last week despite a general rally in emerging markets, with a weak economic outlook holding back appetite for local assets.
"Although some of these socio-political tensions might already be priced into the rand, we maintain that the rand remains vulnerable to headline risk over the medium term,"
"These idiosyncratic concerns could ensure that the rand will struggle to rally significantly, even if sentiment towards emerging markets in general improves."
Government bond yields climbed higher in a market that is pricing in further monetary tightening this year.
The yield on the benchmark R186, due in 2026, increased 9 basis points to 8.75 percent. The yield on the R157 bond, which matures next year, advanced by 4 basis points to 7.125 percent.
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