The South African rand weakened in early trade on Monday, pressured by a firmer US dollar as investors weighed what the Federal Reserve might look like under US President Donald Trump's reported pick for chair, Kevin Warsh, while local markets awaited the release of a purchasing managers' index (PMI).

At 0724 GMT the rand traded at 16.222 against the dollar, about 0.4% down from Friday's close.

"The rand retreated quite sharply against the stronger Dollar, in line with other EM and commodity-based currencies. The local currency, which fell by 2.5% on Friday, to close at R16.12, has opened even softer this morning as gold drops a further 5.0%," said Andre Cilliers, Currency Strategist at TreasuryONE in a research note.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy in addition to local factors.

An Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa's most industrialised economy.

South African manufacturing sentiment fell in December to its lowest level for 2025, driven by steep declines in inventories and employment sub-indices.

Investors will then turn their focus to vehicle sales data for January due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items.

South Africa's benchmark 2035 government bond was also weak in early deals, as the yield rose 7 basis points to 8.105%.