Rand continues to gain on dollar

The rand was firm in morning trade on Friday, maintaining a firm momentum against both the greenback and euro amid a higher gold price, and firm equity prices.

At 8.51am the rand was bid at R7.51 to 38/$ from R7.5780/$ at its previous close.

It was bid at R9.3004 /€ from its previous close of R9.3691/€ and was at R10.9517/£ from R11.0379/£. The euro was bid at $1.2355 from $1.2345 previously.

RMB analysts said in a morning report that markets are faring well in the aftermath of risk aversion that ripped through them earlier this week. "The rand has maintained a strengthening trend amid a higher gold price, rising international equity prices and positive data supporting the sustainability of a local and global recovery.

"Ironically, government officials have seemingly allayed market fears and encouraged a withdrawal from low-yielding assets," RMB said.

For the rest of the day, the euro's fall may be gradual if global share markets gain ground, which could support investor confidence, dealers said. The euro may not drop below ¥111.00 and $1.2250, they added.