Rand sticks to a range

The South African rand was range bound in afternoon trade on Tuesday, hovering below 7.30 against the greenback.

The local currency had earlier shrugged off media reports that the ANC was mulling a tax on volatile capital inflows to achieve a more competitive level for the rand.

At 15.31pm local time the rand was bid at R7.29 to the dollar, R9.62 to the euro and R11.58 to the pound. The euro was bid at $1.3213 from $1.3173 overnight.

A local dealer said: "We are back in ranges this afternoon, following this morning's excitement. He noted that the euro had also calmed down from its earlier gains against the dollar.

Dow Jones Newswires reports that the dollar fell against the euro Tuesday after flat US consumer - and personal-spending figures led to increasing concerns the US recovery could be running out of steam.

The US data comes after a Wall Street Journal report that said the Federal Reserve could consider changing the way it manages its massive portfolio, effectively preventing a tightening in monetary policy.