Rand still performing well

The rand continued its strong showing against the dollar in midday trade on Monday, eying 7.20 against the greenback.

At 11.38am local time the rand was bid at R7.25 to the dollar, R9.47 to the euro and R11.46 to the pound. The euro was bid at $1.3069 from $1.3057 overnight.

A local trader said: "The rand is strong and in line with both the Australian and Canada dollar, with gold performing well.  The rand is showing bias towards continued strength and could test 7.22, 7.20, and even 7.18 against the dollar, which would hold serious long-term support at those levels," he said.

"The tide keeps coming in and out but for now it is very much pro-rand once again - and the unit is on the way to test its best levels this cycle," RMB analysts said in a morning report.

Dow Jones Newswires reports that the euro spiked higher Monday after the euro zone's purchasing managers' index for manufacturers was revised up from its original estimate. However, the single currency's gains proved short-lived in a market that remains concerned about the global economic recovery.