Rand breaks through R7.25 to the dollar

The South African rand found some traction below R7.25/$ in afternoon trade on Thursday.

Earlier, the local currency tracked a firmer euro down to R7.21/$, but the single currency came off a tad, taking the rand with it, a local trader noted.

At 3.34pm local time the rand was bid at R7.24 to the dollar, R9.53 to the euro and R11.48 to the pound. The euro was bid at US$1.3171 from $1.3223 overnight.

A local dealer said: "We went to 7.21 against the dollar for a period, tracking a firmer euro, which has since come off a bit. We did break through 7.25 though, and if we can hold through there, we might see additional rand strength."

Dow Jones Newswires reports that the euro gained against the dollar on the heels of a strong Spanish bond auction and better-than-expected German manufacturing data, helping investor concern over the euro-zone sovereign debt crisis continue to ease.

The common currency remained up on the day after the European Central Bank left key rates unchanged.