The rand was a tad softer in the morning session on Thursday tracking the euro, which declined, on further European fiscal concerns.
At 9.12am the rand was bid at R7.63 to the dollar from R7.59 at its previous close. It was bid at R10.35 to the euro and R11.902 to the pound. The euro was bid at $1.3584 from $1.3607 previously.
A local currency trader said: "The euro is on the edge of a precipice. The euro/rand is the driver for dollar/rand. If the euro bounces we could see a steady weakening of the rand.
The euro is key and the range is R7.59-69/$."
RMB analysts noted in their morning report that with the Budget being overall very rand positive, US dollar/rand finally managed to move out of its range trading down at R7.59.
"There are no legs to this trend though. Indeed with good US data and talk of the Fed unwinding liquidity injections, Euro/US dollar is again pushing at its 9-month lows.”