Euro gives rand a slight lift

The rand was marginally firmer in late trade on Wednesday as a mercurial euro showed a modest recovery against the dollar amid a cautious upturn in global risk appetite.

At 15:45 the rand was bid at R7.71 to the dollar, R9.27 to the euro and R11.22 to the pound. The euro was bid at $1.2035 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 per dollar range. Depending on what happens with the single currency, the rand could test R7.70 today, the trader added.

Dow Jones Newswires reports that the euro gained modestly against the dollar on Wednesday after an unconfirmed report that China would announce strong export growth led to increasing confidence in the global recovery.