Rand firms in morning trade

The South African rand was firm in morning trade on Tuesday ahead of Federal Reserve Chairman Ben Bernanke's testimony to Congress later today.

At 09.01am local time the rand was bid at R7.55 to the dollar, R9.74 to the euro and R11.52 to the pound. The euro was bid at $1.2880 from $1.2890 overnight.

A local dealer said: "The rand firmed overnight, possibly as a result of a stronger Dow. The rand will trade within a 7.52 - 7.60 range against the dollar ahead of Bernanke's speech later today."

RMB analysts echoed that sentiment in a morning report. "From the minutes of their June meeting, we know that the Fed is growing concerned over the economy and rightly so with both consumer confidence, and increasingly the housing market, pointing not just to a slowdown in growth but a proper double-dip recession.”

Dow Jones Newswires reported that the European single unit ticked down from its overnight level. Analysts said even if the results of European stress tests, due Friday, gauging whether the banking sector has enough capital reassure investors, the euro may not rise above $1.3100.