Rand hovers above R10/dlr

Johannesburg - The rand remained above the R10 per dollar level on Friday morning, but was well off its overnight worst levels of around R10.27 by midday. Currency markets are eyeing US data later this afternoon.

At 12:20 the rand was bid at R10.0800 to the dollar from a previous close of R10.2452. It was bid at R12.8938 to the euro from a previous R12.9921 and at R15.8890 against sterling from R15.8686 before.

The euro was bid at $1.2815 from $1.2678 overnight, while gold was quoted at $740.28 a troy ounce from $733.90/oz overnight.

A local currency trader said the market was relatively quiet with players reluctant to commit until the US nonfarm payrolls data later.

"We tried below R10.04 earlier, but didn't manage to stay there. It's going to be relatively quiet until the US data," he added.

Dow Jones Newswires reports the dollar is weaker in Europe on Friday as equities rebound and risk appetite recovers a little ahead of US non-farm payrolls.

The main mover of the morning was euro/sterling, which was bought heavily as investors appeared unimpressed by the Bank of England's shock decision to cut rates by 150 basis points on Thursday.

The buying helped to push the single currency higher across the board, with the euro making strong gains against the yen.

Nevertheless, analysts remain wary of the sudden change in market sentiment and warn that risk aversion will rise again if the US payrolls data falls by more than the 200 000 that is being forecast.

"A much weaker number could be the catalyst for a fresh round in risk aversion," said Sue Trinh, senior currency strategist with RBC Capital Markets in Sydney.

- I-Net Bridge