The rand was steady in noon trade on Monday amid a rebound in risk appetite, fuelled by a recuperation in European equities, which is aiding currencies like the dollar and pound.

However, currency analysts caution that the risk remains to the upside for the local currency in a data-heavy week.

At 12pm the rand was bid at 10.2174 to the dollar from an overnight close of 10.2474. It was bid at 13.2287 to the euro from a previous 13.2296 and at 14.0397 against sterling from 14.0192 before.

The euro was bid at US$1.2937 from US$1.2916 overnight.

RMB currency analyst, John Cairns, says the rand suffered a little shock Friday as global conditions deteriorated, with USD/ZAR pushing past 10.40 at one stage, but by the close the market had slipped back into its old range.

"As we stated Friday, this range-bound trade has proved remarkably resilient and looks to continue. Without any doubt in our view the risks remain to the topside. For today expect nervous trade 10.00 - 10.30 on USD/ZAR and 12.90 - 13.30 on EUR/ZAR. 10.50 and 13.50 may though even be seen," he says.

A keen eye will be kept on company earnings in the US and their fourth-quarter GDP data, with the local CPI on Wednesday another key event.

Dow Jones Newswires reports that a rebound in risk appetite, helped by good news from Barclays and ING, boosted the USD and the GBP. As European equities rose, despite earlier losses in Japan, the USD bounced up to Y89.08 and erased previous declines. The EUR was down at $1.2957, despite hawkish comments by the ECB's Mersch suggesting rates shouldn't be cut far below current levels and quantitative easing in the euro zone would be complicated. The GBP is still down at $1.3715, but has rebounded sharply from well below $1.3600 after Barclays stated it doesn't need to seek any further capital and its pretax profit will be well ahead of forecasts.

Investors sell long, buy short end

Shorter-dated bonds received the lion's share of the buying interest on Monday as investors looked to pick up stock after a steepening in the yield curve.

By 12.26pm the short-term government R153 bond was at 7.070 percent from its previous close of 7.090 percent. The medium-term R157 was at 7.530 percent from a previous 7.540 percent, while the long-term R186 was bid at 8.025 percent from 7.990 percent.

I-Net Bridge