Rand takes cues from euro

Johannesburg - The rand eased against the dollar on Thursday, backing off a one-month high, but was expected to take further cues from the euro, the currency of its key trading partner.

The JSE's blue-chip Top-40 March futures contract was down 0.43%, suggesting a lower start on the bourse at 07:00 GMT.

The rand fell 0.33% against the dollar to 7.52 by 06:42 GMT, from its New York close of 7.4950 on Wednesday. It had touched a one-month high of 7.48.

The rand weakened as gold, a major South African export, fell from a 6-½ week high it touched on Wednesday.

With the local economic data calendar largely bare, the rand will take cue from the eurozone's single currency, dealers said.

"The rand... is bouncing between 7.48 and 7.54/dollar, if euro/rand breaks 10.26 maybe we can go to 7.42," said Jim Bryson chief dealer at Rand Merchant Bank.

The rand was last trading at 10.2741 to the euro from a previous close of 10.2526.

"The euro looks consolidative, there's the (European Central Bank) interest rate decision but we are more looking at the news conference afterwards where they will talk about Greece," Bryson dealer.

Greece announced plans for a further $6.5bn in pay cuts and tax hikes on Wednesday to reduce its deficit, easing worries about its debt crisis, which boosted risk appetite and helped the rand advance to a one-month high.

In local fixed income, government bonds were steady, with the yield on the 2015 issue unchanged from its closing levels on Wednesday at 8.195% and that on the 2036 note also flat at 8.925%.

- Reuters