Dollar strength had the rand on the back foot in late trade on Friday.

At 3.40pm the rand was bid at 9.5580 to the dollar from an overnight close of 9.3425. It was bid at 12.7141 to the euro from a previous 12.6519 and at 13.7058 against sterling from 13.5039 before.

The euro was bid at US$1.3308 from $1.3525 overnight.

"The rand has comne off a bit because of dollar strength. We've seen some big moves by the dollar, particularly against the pound and the euro," a local currency trader said.

Dow Jones Newswires reports that the dollar advanced against its major rivals early Friday in New York as the rally in riskier currencies broke down ahead of key policy meetings next week.

The dollar completely recovered its losses against the euro since the Federal Reserve's vote last week to begin quantitative easing. Now, traders are preparing for similar, albeit less aggressive, plans of action from the European Central Bank when they decide on interest rates next Thursday. On the same day, the highly anticipated Group of 20 summit is also scheduled.

Analysts point to comments Thursday by ECB Vice President Lucas Papademos, who said the ECB could intervene in bond markets to help ease companies' financing problems although they haven't yet decided to do so.

Additional comments by German Finance Minister Peer Steinbrueck have mired the euro as well.

He said the high debt levels being built up currently worldwide might cause another crisis, and that the effects of fiscal stimulus measures are "very limited".

Institutional demand buoys R186s

South Africa's longer-dated bond was pushed stronger during the afternoon session on Friday as institutions bought into weakness. The entire yield curve remains balanced, but the performance of the rand is set to be a key factor next week.

By 4.12pm the short-term government R153 bond was at 6.910 percent from its previous close of 6.750 percent. The medium-term R157 was at 8.165 percent from a previous 8.130 percent, while the long-term R186 was at 8.680 percent from a previous 8.695 percent.

Sapa