The rand remained range bound against the US dollar in early trade on Thursday, little changed from its overnight levels ahead of key local and global data today.

At 8.55am the rand was bid at 9.4440 to the dollar from an overnight close of 9.4819. It was bid at 12.8194 to the euro from a previous 12.8900 and at 13.8020 against sterling from 13.8160 before.

The euro was bid at $1.3556 from $1.3579 overnight.

RMB analyst John Cairns said in his daily report that the EUR/USD gyrated furiously after US Treasury Secretary Geithner said that he was "quite open" to China's suggestion of expanding the use of the IMF's special drawing rights.

"The comment startled investors, sparking a major USD sell-off but the market soon regained its composure once further detail was ascertained. Geithner referred to the prospect of moving to a global monetary union as an "evolutionary" process but emphasised that the USD will retain its status as the world's primary reserve currency," he wrote.

This helped the USD recoup some of its losses with EUR/USD ending the day at 1.35. This level, together with a strong equity market performance, is providing considerable support for USD/ZAR, which is expected to remain in the 9.45-70 range today.

A deluge of data is expected today both locally and abroad. Locally PPI will be watched as well as US GDP (a revised estimate), PCE, initial jobless claims and continuing claims data are all due at 2.30pm.

South Africa's PPI is expected to have increased in February at 7.7 percent year-on-year from the 9.2 percent year-on-year seen in January, a survey by I-Net Bridge has found. Forecasts among the nine leading economists surveyed ranged from just 5.9 percent year-on-year to 9.0 percent year-on-year, while PPI was at 11.3 percent year-on-year a year ago.

I-Net Bridge

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