The rand was slightly weaker in midday trade on Friday following a bounce at 7.70, but looked to hold at around the 8.00 to the dollar level, a local trader said.

At 11.40am the rand was bid at 7.9389 to the dollar from its Thursday night close of 7.8583. It was bid at 11.1012 to the euro from a previous 10.9506 and at 12.9872 against sterling from 12.8350.

The euro was bid at US$1.3996 from US$1.3951 overnight.

A local trader said: "We saw a bounce at 7.70, having oversold on that mark, and although there is potential to get back to that level, we may look to hold at closer to 8.00."

Dow Jones Newswire reports that risk aversion remains strong in the wake of Thursday's disappointing US employment data, pushing the dollar higher in most places in Europe Friday.

After the greater-than-expected fall in payrolls, the global economic recovery is likely to be slower and more difficult than initially anticipated, analysts say.

Sentiment, they add, was also weighed down by Thursday's news of Ireland's debt rating downgrade by Moody's.

With the US on holiday for Independence Day, market conditions are expected to remain thin, providing scope for increased volatility.

Initial reaction to news that US payrolls had fallen by 467 000 rather than just the 350 000 that had been forecast was largely predictable as investors pulled back from risky asset markets. The Dow Jones Industrial Average tumbled 2.6 percent, high-yielding currencies were sold and the dollar and the yen rallied as investors turned to safe havens.

I-Net Bridge