Rand stands tall against the dollar

The rand maintained a firm footing in the morning trade on Wednesday targeting 7.20 against the greenback.

At 8.57am the rand was bid at R7.21 to the dollar, R9.66 to the euro and R10.99 to the pound. The euro was bid at $1.3366 from $1.3399 previously.

A local trader said: "It might be a slog, but we should see gradual rand strength against the dollar, targeting 7.23 and then 7.20. The rand is also firm against the euro, targeting 9.62," he said.

Dow Jones Newswires reported that the dollar and euro rose against the yen as Japanese importers bargain-hunted these units to settle accounts, while rises in Tokyo shares also boosted short-term hedge fund player demand for the currencies versus the safe-haven yen.

Dealers said the greenback may rise further against the Japanese unit if US government bond yields strengthen, making the securities more attractive for global investors. Currency market participants will therefore monitor how yields respond to upcoming US auctions this week.