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Johannesburg - The South African rand was weaker in midday trade on Tuesday, testing the R7.40 to the dollar level on the back of weaker global equities.
A local dealer said the currency market is nervous that the Dow will extend Monday's losses when it opens later in the day.
At 11:42 local time local time the rand was bid at R7.3851 to the dollar from R7.3340 at the previous close. It was bid at R9.3606 to the euro from R9.2888 before and at R11.3927 against sterling from R11.3362 at its previous close.
The euro was bid at $1.2675 from $1.2663 overnight.
A local dealer said: "The rand is tracking the global markets weaker. There is a degree of nervousness that the Dow will extend the losses from Monday when it opens later in the day. This tension is all underpinned by fears that the US economic recovering might be losing momentum."
Meanwhile Dow Jones Newswires reports that foreign exchange markets were showing signs of deep unease about the health of the global economy on Tuesday, with currencies seen as safe refuges climbing at the expense of riskier bets.
Concerns that the US may be sliding back into recession continue to hamper market sentiment, and steps by Japanese authorities to kickstart the domestic economy have left market-watchers nonplussed.
The result is distinctly nervous trading patterns.
In line with this tone, the Swiss franc - arguably the market's premier safe retreat - marked a new record high against the euro.
The single currency fell to just under CHF1.29, having broken below its previous all-time low of CHF1.2971 in Asian trading hours.
Despite concerns about the US economy, the dollar's perceived role as a safe haven kept it well-supported in European trading hours.
The euro slipped to $1.2625 before rebounding slightly.
Focus was on the Japanese yen which rose against the dollar and euro before retreating slightly.
Monday's move by the Bank of Japan to inject further funds into the country's financial system in an effort to support the economy and, many argue, to weaken the currency, have fallen flat.