Rand makes up earlier losses

The South African rand continued to trade within a range on Thursday afternoon.

The South African rand continued to trade within a range on Thursday afternoon.

Having tested highs of 7.46 and a half against the dollar earlier in the day amid importer demand, the local currency firmed a fraction, but still within a range of 7.36-7.46 against the greenback.

At 3.45pm the rand was bid at R7.43 to the dollar, R10.15 to the euro and R11.16 to the pound. The euro was bid at $1.3642 from $1.3642 previously.

A local currency trader said: "We tested highs of 7.46 and a half earlier, but then came off again, but still within the range of 7.36-7.46 against the dollar. Every time the rand does strengthen though, we see the range shifting slightly higher (firmer).

"We do need to breach 7.46 though, for any break out," he said.

Dow Jones Newswires in the European foreign exchange markets, fears over China drove the dollar and the yen a little higher, but both currencies soon fell back again.

Investors warned that the euro and dollar could slip if US initial jobless claims disappoint.