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Johannesburg - The rand was stronger in midday trade on Friday as it tracked the firmer euro.
"We have just been tracking the firmer euro this morning. Trade is quiet given that today is a quarter-end," a local trader said.
Just before midday the rand was bid at R7.6665 to the dollar from its previous close of R7.7117 and Thursday's intraday worst level of R7.7750. It was bid at R10.2295 to the euro from R10.2605 before, and at R12.2594 against sterling from R12.3062 previously.
The euro was bid at $1.3347 from its previous close of $1.3304.
RMB analysts said in a morning report that for a while on Thursday it looked as though the rand was going to run away. It spiked through R7.70 in the morning, then through R7.75 following the monetary policy committee (MPC) announcement for a high of R7.7750.
"The moves then reversed late overnight as US equities suddenly surged in the last 30 minutes of trade, dragging the dollar weaker," they said.
Standard Bank analysts said in a report that the rand's losses on Thursday were fuelled in part by the dovish tone from the MPC. The central bank left the repo rate unchanged at 5.5%, while making marginally positive adjustments to its inflation outlook.
"The currency nevertheless pulled back this morning, in line with a strengthening in the euro ahead of a European finance ministers meeting today.
"Market optimism seems high that this two-day meeting will result in a bolstering of the EU's rescue fund. Fellow commodity currencies such as the Aussie and New Zealand dollar are also firmer this morning, reflecting broadly stronger commodity prices and adding to evidence of a definite risk-on feeling this morning.
"All things being equal, this should be supportive of rand strength today," they wrote.
"We have just been tracking the firmer euro this morning. Trade is quiet given that today is a quarter-end," a local trader said.
Just before midday the rand was bid at R7.6665 to the dollar from its previous close of R7.7117 and Thursday's intraday worst level of R7.7750. It was bid at R10.2295 to the euro from R10.2605 before, and at R12.2594 against sterling from R12.3062 previously.
The euro was bid at $1.3347 from its previous close of $1.3304.
RMB analysts said in a morning report that for a while on Thursday it looked as though the rand was going to run away. It spiked through R7.70 in the morning, then through R7.75 following the monetary policy committee (MPC) announcement for a high of R7.7750.
"The moves then reversed late overnight as US equities suddenly surged in the last 30 minutes of trade, dragging the dollar weaker," they said.
Standard Bank analysts said in a report that the rand's losses on Thursday were fuelled in part by the dovish tone from the MPC. The central bank left the repo rate unchanged at 5.5%, while making marginally positive adjustments to its inflation outlook.
"The currency nevertheless pulled back this morning, in line with a strengthening in the euro ahead of a European finance ministers meeting today.
"Market optimism seems high that this two-day meeting will result in a bolstering of the EU's rescue fund. Fellow commodity currencies such as the Aussie and New Zealand dollar are also firmer this morning, reflecting broadly stronger commodity prices and adding to evidence of a definite risk-on feeling this morning.
"All things being equal, this should be supportive of rand strength today," they wrote.
