The rand traded in a range in the Friday morning session, having fluctuated in earlier sessions amid a stack of mixed data.

The local currency gave up a fraction against the dollar.

At 8.52am the rand was bid at 8.0460 to the dollar from a previous close of 7.9933. It was bid at 11.4705 to the euro from a previous 11.4045 and at 13.3290 against sterling from 13.2400.

The euro was bid at US$1.4260 from US$1.4280 overnight.

A local trader said: "We are pretty much where we were yesterday following the rate cut decision. It's pretty range bound at the moment at 7.98- 8.08 against the dollar."

RMB analyst John Cairns said in his morning report that the ZAR appeared to have mastered the tango, pacing back and forth amid a mixed series of data yesterday.

"Prosperous EU GDP figures and a generally upbeat Fed statement sustained the ZAR around the 7.95 level for most of the day, but the ZAR faltered in late afternoon trade hitting a high of 8.07. While the sharp move was largely attributed to the SARB's surprising rate decision, it was somewhat exaggerated by a slight weakening in EUR/USD, on account of poor US retail sales and jobless claims figures. Despite US government initiatives, such as the "Cash for Clunkers" programme, to boost retail sales the data is still indicative of weak consumer demand in the US," he said.

"The Fed alluded to the fact that sluggish income growth and job losses were constraining household spending and that this would severely slow down the rate of economic recovery. An improvement in the University of Michigan confidence survey, due later today, might provide the impetus for more robust spending in 2H09," Cairns added.

"Given the lack of event risk and the nonchalant response of global equity markets to the US retail sales figures, the ZAR is unlikely to react sharply to the University of Michigan survey and should remain constrained within a narrow trading range of 7.90 - 8.10 today," Cairns forecast.

Dow Jones Newswires reports that the euro and dollar fell against the yen in Asia on Friday as weak Chinese stocks and lower US long-term interest rates prompted players to sell those units for the Japanese currency.

Japanese exporters joined in the selling on a regular settlement day, dealers said, while the dollar came under further pressure ahead of the redemption of US Treasuries on 17 August.

With the outlook for Chinese share prices remaining grim, the euro and dollar are expected to continue heading southward against the yen, traders said.

"After the negative retail sales figures yesterday, recent optimism over the US economy is somewhat receding," said Masanobu Ishikawa, general manager of Tokyo Forex & Ueda Harlow. Lower long-term US interest rates were also hurting the dollar, he said.

International bid leads to turnaround

Bonds pulled off earlier weakness on Friday morning as some international interest filtered through. However, selling interest also remains in place, setting the tone for volatile conditions ahead.

By 8.59am the short-term government R153 bond was bid at 7.715 percent from a previous 7.800 percent. The medium-term R157 was at 8.270 percent from 8.280 percent, while the long-term R186 was at 8.800 percent from 8.810 percent before.