South African Rand has remained largely flat as talks continue in the US to resolve the fiscal cliff situation in the economy.

The Rand was trading at R8.4724 against the US dollar from its previous close of R8.4710 on Friday. The local currency was trading at R11.1761 against the Euro from its previous close of R11.2025 and at R13.6847 against sterling compared to R13.6597 earlier.

Experts have said that the uncertainty over the issue of fiscal cliff is putting pressure on the economic growth as investors are hindered by prospects of $600-billion in tax increases and spending cuts. If the there is not agreement to resolve the situation, a series of spending cuts and tax hikes will automatically take affect from 2, January, 2013. Republicans in the US congress are opposing tax hikes for highest earners and are proposing increasing tax revenue without raising tax rates by limiting tax deductions and closing loopholes.

President Barack Obama and congressional leaders have both said that they are committed to address the issue by reaching an agreement in time. The discussions on the matter are expected to go on in the month of December. However, the developments have slowed because lawmakers and the President himself are away for Christmas holidays.