Johannesburg - The rand traded in a tight range against the
dollar on Thursday but looked set to track slight firmness in the euro as
traders pared extremely bearish positions in the single currency ahead of the
Sunday’s crucial Greek election.
The rand was barely moved at R8.3803 against the greenback
at 06:09 GMT from last night’s New York close of R8.3840.
"The rand is edging stronger in edgy trade," Rand
Merchant Bank said in a note.
"USD/ZAR is now under R8.40, helped by a rally in
EUR/USD, targeting the low R8.30s as it catches up with other high-yielding
The currency weakened momentarily on Wednesday after
disappointing retail sales numbers but firmed with the euro in late afternoon
trade. It is now expected to trade between R8.25 and R8.50.
The rand often tracks the euro, the currency of its largest
regional trading partner.
Yields on benchmark bonds dropped just one basis point to
6.17% for the three-year note and 8.265% for the 14-year bond.
The government is holding a switch auction to roll over a
bond maturing in two years into its 14- and 29-year issues. The results are due
at 09:30 GMT.