The rand was strong in afternoon trade on Monday amid dollar weakness against major currencies.

The local currency was fixed in a tight range on a relatively quiet day of trade.

At 3.43pm the rand was bid at 7.9390 to the dollar from its overnight close of 8.0425. It was bid at 11.3023 to the euro from a previous 11.3535 and at 13.1190 against sterling from 13.1250.

The euro was bid at US$1.4235 from US$1.4116 overnight.

A local trader said: "The rand has been under the 8.00 mark for most of the day, and its strength is based on dollar weakness against the other major currencies.

"It has been a relatively quiet day of trade, and we have been in a tight range, between 7.96-8.0 against the dollar," the trader said.

Dow Jones Newswires reports that a further improvement in global risk sentiment is keeping the dollar on the defensive and at multi-week lows against the euro and other currencies save for the yen so far on Monday.

The latest positive mood swing has been fed by news that US commercial lender CIT Group has reached an agreement with its creditors and for now looks to avoid collapse.

"Markets are clearly relieved to avoid yet another big-name bankruptcy, and just about everything risky is rallying this morning," said currency strategists at TD Securities, pointing to rallies for most overseas stock exchanges and an extension of recent gains for risk-sensitive currencies.

Sentiment also continues to be buoyed by the stream of generally positive second quarter earnings results being reported by major corporations, which continues through this week.

"Market participants are by now well aware that the first wave of earnings have at least met, and more generally exceeded expectations," according to HSBC Group currency strategists. "And that reality has, for now, overwhelmed concerns of further stresses in the economy and financial system."

The euro has also been one of the main beneficiaries of this new-found risk appetite.

Euro sentiment was helped by Jean-Claude Juncker's remark at the end of last week that the euro's strength against the dollar is structural and therefore not worrying. Juncker is chairman of the euro-zone group of finance ministers and his remark has helped to reduce fears of intervention if the euro continues to rise.

Onwards, upwards on Marcus cheer

Bond prices continued onwards and upwards on Monday as news of a new central bank governor and a strong rand added a spark.

By 4.02pm the short-term government R153 bond was bid at 7.200 percent from a previous 7.245 percent. The medium-term R157 was at 8.510 percent from 8.570 percent, while the long-term R186 was bid at 9.020 percent from 9.070 percent before.

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