Rand range-bound ahead of US data

Johannesburg - The rand was range bound in midday trade on Friday ahead of non-farm payrolls data in the US.

At 11:41 the rand was bid at R7.4460 to the dollar from R7.4755 at its previous close. It was bid at R10.1398 to the euro from its previous close of R10.1470 and was at R11.2259 against the sterling from R11.2208.

The euro was bid at $1.3594 from $1.3581 previously.

A local currency trader said: "The range is R7.42 to R7.52 against the dollar, before non-farms data. There is still sentiment to buy rands, but in my opinion, it looks overdone, and we might see R7.60 against the dollar."

In their morning commentary, RMB analysts noted that the weekend was vital for Greece as its Prime Minister, George Papandreou, meets with his German and French counterparts to secure firm commitments of support. The country requires more than a mere pat on the back to manage their fiscal constraints and drive bond yields down to pre-budget crisis levels.

Although news of the overwhelming success of the country's €5bn bond issuance inspired investor confidence, tensions between Athens, Berlin and Paris remain, the analysts said.

Dow Jones Newswires reports in the currency markets, the US dollar is a little lower in places as the market squares up ahead of the latest US payrolls in case bad weather distorts the figures even more than expected. The euro is higher despite Moody's downgrade of Deutsche Bank and concern over what German Chancellor Merkel will say to Greek PM Papandreou when he visits Berlin.

The Japanese Yen is weaker after reports that the Bank of Japan might ease monetary policy some more. The US dollar is up at ¥89.27 while the euro is up at $1.3594. The GB pound is up at $1.5037.

- I-Net Bridge