The South African rand softened in early trade on Monday, and with few major domestic data points this week, the local currency will likely be driven by global events, analysts said. At 0713 GMT, the rand traded at 17.

FirstRand Ltd. has turned more bullish on South Africa’s economy, and now sees a greater chance of economic growth accelerating to 2% and the rand strengthening to below 16 per dollar next year.

South Africa's rand gained against the dollar on Monday after tumbling last week, as investors turned their attention towards U.S. inflation data later this week and comments by Federal Reserve officials.