Rand recovers but remains vulnerable

The rand recovered some lost ground against the dollar and its emerging market peers in early trade on Tuesday, but remained vulnerable ahead of the U.S. jobs data later in the week.

At 0625 GMT, the rand was 0.46 percent firmer at 12.63 to the greenback versus Monday's close of 12.6880.

"Last week's depreciation has arguably lessened some of the pressure on the unit from a relative value perspective, even as foreign portfolio inflows have been moderating," said Carmen Nel, a trader at Rand Merchant Bank.

The rand has dropped nearly 10 percent against the dollar this year - hitting a 14-year low of 12.7700 last week - as investors dumped emerging market assets in anticipation of an rate hike in the U.S. later this years.

Investors will keep a sharp eye on the U.S. jobs data on Friday for clues on the timing of interest rates hike in the world's biggest economy.

Tracking the strong performance of the rand, government bonds were firmer, with the yield for the 2026 benchmark down 4 basis points at 8.205 percent.

- Reuters