The South African rand weakened a smidgen in midday trade on Wednesday as a downbeat change in global sentiment saw the euro relinquish earlier gains.
At 12.15pm the rand was bid at R7.73 to the dollar, R9.25 to the euro and R11.19 to the pound. The euro was bid at $1.1970 from $1.1968 overnight.
A local trader said the rand would continue to track the euro, while remaining in a R7.70 to R7.80/$ range. Depending on what happens with the single currency, the rand could test 7.70 today, the trader added.
RMB analysts said in their morning report that the price of gold has surged to unprecedented highs as mounting concerns over the depth of the Eurozone debt crisis and its impact on the economic recovery, continues to stoke a flight to safety.
This has boosted commodity-linked currencies, notably the AUD and NZD, which have derived support from the higher price though fluctuations in Asian equity markets, have capped the extent of currency gains.
The euro lost most of its early gains and the dollar was mixed with investors once again looking for clarification on when US interest rates might start rising.