The rand was firmer against major currencies in late trade on Thursday as global risk appetite improved amid growing optimism that the worst economic turmoil is past.

The local currency was unmoved earlier by local producer price inflation data for February which came in better than expected.

At 4.20pm the rand was bid at 9.3761 to the dollar from an overnight close of 9.4819. It was bid at 12.7349 to the euro from a previous 12.8900 and at 13.6722 against sterling from 13.8160 before.

The euro was bid at US$1.3595 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 euro turned lower versus the dollar Thursday, and the yen hit an intraday bottom, as US stocks pared gains.

The euro has been very sensitive to risk appetite, as determined by equities, particularly as traders are hesitant to make any significant bets ahead of the European Central Bank meeting and Group of 20 Summit next week.

About a half-hour before stock trading opened Thursday in New York, the euro had hit a session high of $1.3640.

As favour turned toward the dollar, it also reached a one-week high against the yen, at Y98.70.

Switch leaves trading banks long of stk

Bonds lost further ground during the afternoon session on Thursday despite a strengthening rand and soothing PPI data as the market digested the large amount of stock being placed.

By 4pm the short-term government R153 bond was at 6.670 percent from its previous close of 6.635 percent. The medium-term R157 was at 8.100 percent from a previous 7.970 percent, while the long-term R186 was at 8.680 percent from a previous 8.530 percent.

I-Net Bridge