Rand slightly up against the dollar

The rand was little changed from its early morning levels by noon in what a trader said was a quiet session which saw the currency strengthen on the back of a weakening dollar.

At 12pm the rand was bid at R7.75 to the dollar from R7.80 at its previous close. It was bid at R11.42 to the euro and R12.81 to the pound. The euro was bid at $1.4755 from $1.4716 overnight.

"We have been quiet. Since last night we saw the dollar has been weakening and that is the reason for the strengthening rand," a local trader said.  "I think the day will be quiet. Any spikes towards the 7.78-7.80 level, we will see selling into that. For now there is support around the 7.64 level. We will track the dollar against the majors."

RMB analysts John Cairns and Nema Ramkhelawan earlier said that on Tuesday was better for the rand, US dollar/rand dropping off R8 to settle around R7.80. “This comes despite some decent USD strength, as evidenced also in the EUR/ZAR pullback to R11.50.

"Gold gains to new highs probably helped, so too the news that Warren Buffett was betting big on the outlook of the US economy.”