Rand still softer against the dollar

The rand was softer at midday on Tuesday tracking a weaker euro on risk aversion amid sovereign debt concerns, and further credit rating downgrades to euro-zone members.

At 11.39am the rand was bid at R7.55 to the dollar, R9.58 to the euro and R11.18 to the pound. The euro was bid at $1.2687 from $1.2777 previously.

A local trader said: "A bit of risk aversion seems to have crept back into the market today, with the euro retreating slightly against the US dollar, and global equities generally lower after a strong rebound yesterday. Our range for today stands at R7.50-R7.60 to the US dollar."

Meanwhile, Dow Jones Newswires reports that fears of credit downgrades hit the euro and the pound Tuesday, with both the dollar and the yen benefiting as safe havens.

The new wave of negative sentiment, helped by fresh speculation of a yuan revaluation, knocked European stocks about 1% lower, reversing some of the large gains that were seen in US markets on Monday.