The rand remained range bound against major currencies in noon trade on Thursday, unmoved by producer price inflation data for February which came in better than expected.

Local currency traders said the local currency appeared to be in a "consolidative phase".

At 12pm the rand was bid at 9.4550 to the dollar from an overnight close of 9.4819. It was bid at 12.8135 to the euro from a previous 12.8900 and at 13.7848 against sterling from 13.8160 before.

The euro was bid at US$1.3570 from $1.3579 overnight.

"The rand is looking very consolidative at the moment. It didn't move on the PPI data. We'll have to see what the Dow does tonight," a local currency trader said.

South Africa's producer price index rose by 7.3 percent year-on-year in February from 9.2 percent y/y in January, Statistics South Africa (Stats SA) data on Thursday showed. This is the sixth consecutive decrease in the producer price inflation headline number.

The PPI dipped -0.3 percent on a monthly basis after January's monthly decrease of -0.7 percent.

The PPI was expected to have increased at 7.7 percent y/y according to a survey of nine leading economists by I-Net Bridge, with forecasts ranging from just 5.9 percent to 9.0 percent y/y.

Exports were at 1.6 percent y/y from 2.6 percent in January.

Imports were at -8.8 percent y/y from -5.0 percent the month before.

Dow Jones Newswires reports that the dollar is mostly higher as concerns over US Treasury backing for the currency as a reserve fades. A rise in risk appetite, with equity markets gaining, helped to lift the euro against the Japanese yen.

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.

I-Net Bridge