South African rand treads water as unity government talks continue

Source: Market Screener

JOHANNESBURG (Reuters) - The South African rand was steady in early trade on Monday, as investors looked for more clarity from talks between political parties on forming a government of national unity in the country.

The African National Congress (ANC) last week issued a broad invitation to other parties to be part of a new government, after it lost its majority in last month's election for the first time since the end of apartheid.

The ANC has not ruled out working with any party and its potential partners diverge widely, from the pro-business Democratic Alliance to the hard-left Economic Freedom Fighters.

At 0716 GMT, the rand traded at 18.90 against the U.S. dollar, the same level it closed on Friday.

Oxford Economics Africa said in a research note that the negotiations between political parties would remain front and centre this week and the rand would be skittish until there was more certainty.

On the Johannesburg Stock Exchange, the Top-40 index was down about 1% in early trade. South Africa's benchmark 2030 government bond was slightly firmer, with the yield down 1.5 basis points to 10.525%.

(Reporting by Alexander Winning; Editing by Rashmi Aich)