Rand follows euro up against the dollar

The rand firmed in midday trade as it continued to track a buoyant euro.

At 11:46am local time the rand was bid at R7.60 to the dollar, R9.88 to the euro and R11.62 to the pound. The euro was bid at $1.2956 from $1.2899 overnight.

A local trader said: "It would seem that we are tracking euro movement at present." He however, noted bias towards a weaker rand during the course of the afternoon. "It needs to reach 7.67-68 against the dollar to get interesting," he said.

Dow Jones Newswires reports that currency markets maintained a quiet but buoyant tone in European trading hours Monday with the euro and sterling holding onto gains while the dollar weakened slightly.

The euro climbed despite a downgrade of Ireland's credit rating by Moody's Investors Service Inc., and despite rising concerns over Hungary after the country failed to reach a funding deal with the International Monetary Fund and the European Union.