The rand was off the session's best levels but remained range bound in late trade on Friday as markets mark time as they await the outcome of a Group of Seven countries meeting.

After weakening three percent against the dollar on Thursday, the rand retreated back below the 10 rand per dollar level overnight and has remained there as investors take some comfort from reports that the US government is mulling new plans to help individuals struggling with mortgage payments.

At 4.10pm the rand was bid at 9.9817 to the dollar from an overnight close of 9.8863. It was bid at 12.8173 to the euro from a previous 12.7965 and at 14.4860 against sterling from 14.1643 before.

The euro was bid at US$1.2847 from US$1.2893 overnight.

RMB analyst John Cairns said that the rand was still trying to find some equilibrium after a week of volatile trade and lack of clarity on all the news.

He added that global uncertainty isn't helping and disappointment over the latest US financial stimulus plan continues.

"The rand is still subject to volatility. It all depends on what news there is," a currency trader added.

Added JP Morgan: "The action in $ZAR has certainly been choppy following yesterday's sharp reversal from the 10.20/25 area (downtrendline from Jan high). Still, the upside bias remains intact given the constructive bias to the advance from the 9.50 area."

Dow Jones Newswires reports that the euro is down versus the dollar Friday, but not by much, despite a record contraction in fourth-quarter euro-zone gross domestic product.

Currencies may be on hold ahead of the communique from the Group of Seven countries meeting, which begins Friday. Traders are cautious that finance ministers may talk up currency volatility or that new rescue measures could emerge. Sentiment for riskier assets, such as the euro, is also supported ahead of an expected vote Friday on the US economic-stimulus bill and after news emerged late Thursday that the US government is working on a plan to subsidize mortgage payments.

Samarjit Shankar, director of global strategy at Bank of New York Mellon in Boston, noted the two-year and 10-year US yields are up as "global investors, heartened by the likely passage of the US economic stimulus bill, begin to put some risk back on."

Indeed, stocks in Europe are up, too

Sympathy buying after Eskom auction

Bonds ticked up into double-digit gains at the long end on Friday in sympathy with a significant longer-dated bond issuance by state power utility Eskom.

By 4.49pm the short-term government R153 bond was at 6.720 percent from its previous close of 6.755 percent. The medium-term R157 was at 7.910 percent from a previous 8.000 percent, while the long-term R186 was bid at 8.425 percent from 8.520 percent.

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