The rand traded in a narrow range on Thursday afternoon, amid worse-than-expected payroll figures in the US.

At 3.45pm the rand was bid at 7.8501 to the dollar from its Wednesday night close of 7.7285. It was bid at 11.0000 to the euro from a previous 10.9360 and at 12.8376 against sterling from 12.7324.

The euro was bid at US$1.4013 from US$1.4151 overnight.

A local trader said: "We are trading in a very narrow range between 7.78 ? 7.84. The rand weakened slightly after worse-than-expected payroll figures in the States, but nothing serious.

"The rand will continue to track equity markets, but trade will probably be quiet ahead of the holiday in the US tomorrow," the trader said.

Dow Jones Newswire reports that the yen is stronger against the euro and dollar after the release of a worse-than-expected payrolls report.

The safe-haven dollar also hit a session high against the euro, which fell to US$1.4014, as US stock futures tumbled.

"The market was already anticipating a weaker number," said David Woo, global head of foreign exchange strategy at Barclays Capital in London. "The euro was trading down against the dollar ahead of the report."

Non-farm payrolls declined 467,000 in June, the US Labour Department said, a considerably greater decline than the 350,000 expected by economists in a Dow Jones Newswires survey.

"This number is definitely not good for risky assets, and this could actually help precipitate a pullback in risky assets," said Woo.

Overnight, the dollar already regained Wednesday's losses against the euro as global equities retreated ahead of the US payrolls report.

Pressure also came off the buck after China dismissed a report that it was seeking to debate a new international reserve currency at next week's Group of Eight meeting. Vice Foreign Minister He Yafei said he hadn't heard of any such request. He said he hoped the dollar would be stable because of its role as the main reserve currency.

Gordhan comments still loom large

Bonds were off their worst levels by the late afternoon on Thursday, but remained on the back foot weighed by supply concerns after Finance Minister Pravin Gordhan indicated that there will be more bond issuance.

A softer rand was also adding to the sombre mood in the market.

By 4.02pm the short-term government R153 bond was bid at 7.465 percent from a previous 7.350 percent. The medium-term R157 was at 8.790 percent from 8.650 percent, but off a worst intraday print of 8.840 percent, while the long-term R186 was at 9.250 percent from 9.125 percent before.