Rand slightly up in afternoon trade

The rand firmed a fraction in afternoon play, but amid quiet trade as eyes continue to fix on the euro's movement amid renewed uncertainty over the financial stability of countries in Europe, this time in Hungary.

At 3.41pm the rand was bid at R7.79 to the dollar, R9.30 to the euro and R11.31 to the pound..1946/£. The euro was bid at $1.1924, from $1.1937 previously.

A local trader said: "We haven't seen too much action this afternoon, with support at 7.75-76 against the dollar. The euro is still key, with eyes on futures, and stocks."

Dow Jones Newswires reports that euro recovered on Monday after earlier touching its lowest level against the dollar since March 2006, but investors kept the common currency under pressure over fears the euro-zone sovereign-debt crisis was spreading.
Better-than-expected German factory-orders data supported the euro, indicating a weaker currency was helping to bolster exports after last year's 5% contraction, the worst performance in 60 years.

"Although the European-area sovereign-debt crisis is supposedly restraining domestic activity, the appeal of lower-cost goods produced within the euro zone is boosting overseas demand," said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Conn.

Despite its brief respite, the euro again faces pressure, perhaps declining as far as $1.1645 in the near term, as investors worry the debt crisis that started in Greece will continue to spread, spilling across euro-zone borders into Hungary.