The rand remained slightly softer against the US dollar on Wednesday morning, having moved back into the 9.50s, as some nervousness about global stock markets returned to the markets.

The local currency shrugged off a worse-than-expected consumer inflation figure released at 11.30am, as well as the SARB's quarterly bulletin.

At 11.55am the rand was bid at 9.5392 to the dollar from an overnight close of 9.4450. It was bid at 12.8580 to the euro from a previous 12.7697 and at 13.9448 against sterling from 13.9237 before.

The euro was bid at US$1.3480 from $1.3469 overnight.

"The rand is continuing in ranges, consolidating after its recent sharp move and looking for direction," said a trader.

The increase in South Africa's consumer price index, which is used by the South African Reserve Bank for its inflation target, was up 8.6 percent year-on-year in February from 8.1 percent y/y in January, Statistics South Africa said on Wednesday.

The new consumer inflation index was expected to have remained unchanged at 8.1 percent y/y, according to a survey of leading economists by I-Net Bridge.

Forecasts among the nine leading economists surveyed for CPI ranged from 8.0 percent to 8.6 percent.

The currency will be watching key economic data later today in the form of

US new home sales. If they are worse than expected, he said the rand could firm a bit, a trader noted.

Earlier RMB analyst John Cairns said in his daily report that he expects the rand to trade in a 9.45 to 9.70 range today.

Dow Jones Newswires reports the EUR/USD dipped some 15 ticks to 1.3430 after Ifo comes in a touch on the soft side with business expectations at 81.6 against 81.9 expected and business sentiment at 82.1 versus 82.2 seen.

However, it has since recovered some ground to last trade at 1.3480.

Bonds lose ground on CPI data

Bonds weakened by around seven basis points on Wednesday after consumer price inflation for February came in worse than expected.

A weaker rand was also adding to the weakness in the bond market.

By 11.45pm the short-term government R153 bond was bid at 6.695 percent from its previous close of 6.550 percent. The medium-term R157 was at 7.980 percent from a previous 7.830 percent, while the long-term R186 was bid at 8.565 percent from a previous 8.370 percent.

I-Net Bridge