Rand continues to track euro

The rand continued in a tight range against the dollar on Tuesday afternoon tracking the euro amid lacklustre trading.

At 3.35pm the rand was bid at R7.31 to the dollar, R9.92 to the euro and R10.98 to the pound. The euro was bid at $1.3509 from $1.3566 previously.

A local currency trader said: "The range is 7.30 to 7.40 against the dollar, but trading has been dull today, with eyes still on the euro."

Dow Jones Newswires reported that the dollar was broadly higher Tuesday morning, but remained in existing trading ranges against its major rivals as markets waited for developments in Greece's sovereign debt crisis.

"The US dollar is firmer, but still stuck in trading ranges, even if the edges have frayed a bit," said currency strategists at Brown Brothers Harriman in New York. Fears that euro-zone leaders seem unlikely to come up with a rescue package for Greece at this week's summit weighed on the euro in Europe, although the common currency's weakness was largely confined to trading against the greenback.

"It's not euro weakness. If we look at the crosses, it looks more like moderate dollar strength," said Elsa Lignos, G-10 foreign exchange strategist at RBC Capital Markets in London.