The rand looked to consolidate in midday trade on Friday, eyeing a range of 7.55-7.76 to the US dollar.

At 11.45am the rand was bid at 7.7128 to the dollar from its overnight close of 7.7230. It was bid at 10.9515 to the euro from a previous 10.9270 and at 12.6877 against sterling from 12.7210.

The euro was bid at $1.4210 from $1.4149 overnight.

A local trader said: "It looks like we are heading into a period of consolidation. A range of 7.55-7.76 against the dollar is likely, but could extend to 7.83 on the upside," the trader said.

He added that current positive sentiment was not harmed by a possible Bharti/MTN deal, but he added that it was a number of factors and not just one that had a bearing on the market, including the strong Dow and local exchange.

RMB analyst John Cairns said in his morning report that with great corporate results out of Wall Street and US existing home sales rising for the third month in a row, "we are starting to hear talk of a V-shaped economic recovery".

"Most of us economists will shake our heads in disbelief but there's no stopping the markets as the Dow Jones index surged 2.1 percent, pushing through 9000 to trade at the highest level since November. Strong import orders and even rumours of SARB reserve accumulation can't stand in the way, with USD/ZAR dipping to 7.63 and even very briefly to 7.61," Cairns said.

"Yet there is one major problem. While everything else is managing to make new levels, EUR/USD just can't seem to push past the year-high of 1.43. This has led to sharp profit taking and a reversal to 1.415. USD/ZAR is left playing catch-up, trading to 7.74 in Asia with some further upside perhaps in order.

"This is not of great concern as a break lower has been opened technically and it remains to be seen if the USD can hold its gains. Look for wide ranges on USD/ZAR today but without fresh lows and with the markets looking to reassess next week," Cairns concluded.

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