Money SA economy
The rand was on the front foot in midday trade on Tuesday as risk appetite crept back into the market, a local trader said.
At 11.39am local time the rand was bid at R7.69 to the dollar, R9.68 to the euro and R11.67 to the pound. The euro was bid at $1.2586 from $1.2537 overnight.
"The rand gained ground amid improved risk appetite in the market. The global equities are looking fairly strong, along with the euro against the US dollar. However, there is nothing dramatic that is underpinning this rebound in the rand. The range for today is 7.65-7.75 to the US dollar," the dealer said.
Dow Jones Newswires reports that a fairly bullish statement on growth prospects from the Reserve Bank of Australia (RBA) lifted global sentiment, sent European stock markets rising and pushed the dollar down in favour of the euro on Tuesday.
The single currency has also benefited from a sharp rise again against the Swiss franc after new data suggested that deflation pressures remain alive and well in Switzerland.
The turnaround in market sentiment, which has been recently dominated by fears over the global economic recovery, came as the RBA left its interest rates unchanged as expected but then issued a statement that gave a more buoyant assessment of growth prospects.
