The rand remained slightly softer against the dollar in late trade on Wednesday, 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 4pm the rand was bid at 9.5096 to the dollar from an overnight close of 9.4450. It was bid at 12.8282 to the euro from a previous 12.7697 and at 13.9448 against sterling from 13.9237 before.

The euro was bid at US$1.3487 from $1.3469 overnight.

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

He added that the local currency was unmoved by the disappointing consumer inflation data.

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.

Dow Jones Newswires reports that the euro is slightly up versus the dollar after falling overnight close to its lowest level since the Federal Reserve announced it would buy longer-dated Treasurys.

The euro declined as low as $1.3418 amid mounting caution ahead of the European Central Bank meeting and the Group of 20 summit next week. This is manifesting in some aimlessness in the market, with the European currency rangebound.

Nevertheless, UBS flow data is showing dollar selling continues. A worse-than-expected result from the German Ifo Institute's business confidence index for March has been brushed off.

Flows out of the dollar, a funding currency, were also supported by US February durable goods data Wednesday morning. Durable goods orders unexpectedly climbed last month. Manufacturers' orders for long-lasting goods increased 3.4 percent, the Commerce Department said.

'Spectre of inflation' haunts bonds

Bonds lost ground on Wednesday as consumer inflation surprised on the upside and views arose that it is possible rate cuts in South Africa may not be as rapid and deep as expected.

A weaker rand was also adding to the weakness in the bond market, a dealer said.

By 3.30pm the short-term government R153 bond was bid at 6.645 percent from its previous close of 6.550 percent. The medium-term R157 was at 7.990 percent from a previous 7.830 percent, while the long-term R186 was bid at 8.550 percent from a previous 8.370 percent.

I-Net Bridge