The rand was in ranges and steady above 7.70 in late afternoon trade on Wednesday with a trader noting that the currency would need to break 7.80 before going "dramatically higher".

At 3.53pm the rand was bid at 7.7449 to the dollar from its Tuesday night close of 7.7155. It was bid at 10.9544 to the euro from a previous 10.8139 and at 12.8045 against sterling from 12.6830.

The euro was bid at US$1.4158 from US$1.4033 overnight.

"It's been a fairly volatile day, we moved from about 7.78 to below 7.70," a trader said.

"We have been in terrible ranges," another trader said.

"We need to break 7.80-7.82 to go dramatically higher.

"At the moment we are in ranges," he said.

Earlier in the day the trader told I-Net Bridge that 7.70 was becoming a pivotal for the rand. "We couldn't sustain the break of 7.70. But if we do break it 7.50 is open.

"If we remain below 7.80, there is still potential to the downside," he said.

Dow Jones Newswires reports the dollar was sold off on Wednesday morning on gains in European stocks and positive US stock futures, which boosted risk appetite and higher-yielding currencies.

The euro and UK pound gained to session highs, $1.4122 and $1.6492, leading the Swiss franc to advance to an intraday high as well.

The move came in spite of a disappointing US private sector jobs report.

Private-sector jobs in the US fell 473 000 in June, according to payroll giant Automatic Data Processing Inc and consultancy Macroeconomic Advisers.

The euro and pound were also supported by encouraging manufacturing sector reports released overnight, ahead of the US ISM Manufacturing Index out at 10 am EDT.

The contraction in euro-zone manufacturing output moderated for the fourth consecutive month in June, although improvements in France were offset by ongoing weakness in Germany and Italy. China's Purchasing Managers Index also ticked up in June, as did the UK's.

"When these little green shoots continue to manifest themselves one way or another, traders continue to want to take risk," said Carl Forcheski, vice president for foreign exchange at Societe Generale in New York.

This is particularly relevant ahead of second quarter earnings season, as many believe the worst is behind us.

Gordhan comments knock bonds

Fairly definitive comments by Finance Minister Pravin Gordhan on Wednesday that there will be more bond issuance did not go down well with the market as losses of close to 20 basis points were clocked.

By 4pm the short-term government R153 bond was bid at 7.305 percent from a previous 7.190 percent. The medium-term R157 was at 8.650 percent from 8.470 percent, while the long-term R186 was bid at 9.125 percent from 8.930 percent before.

I-Net Bridge