Rand in narrow range as Greece in spotlight

Johannesburg - The rand was largely flat against the dollar on Thursday and was likely to tread a narrow range while investors tracked ongoing negotiations aimed at averting Greece's debt problems.

Worries about contagion from a Greek default, coupled with expectations that the United States will likely raise interest rates soon, have dampened investor appetite for high-yielding but riskier emerging markets like South Africa.

At 10:45 the rand was changing hands at R12.1350/$, little changed from Wednesday's New York close at R12.1485.

"The market must be completely lethargic now given there is still no resolution in the Greek debt crisis," Standard Bank trader Warrick Butler said in a note.

"It seems that the 'buy the rumour' phase of the market's relationship with this story has worn thin now and instead we adopt a wait and see approach."

On the local front, traders and analysts did not expect much of a market impact from producer inflation data due out at 11:30.

Government debt was also firmer in early trade, and the yield for paper maturing in 2026 fell 4.5 basis points to 8.185%.