The rand remained range bound in the afternoon session on Monday at 7.35-7.38 against the greenback amid a very quiet day, according to a local trader.

At 3.44pm the rand was bid at 7.3576 to the dollar from 7.3300 at its previous close. It was bid at 10.9722 to the euro from its previous close of 10.9220 and was at 12.0060 against sterling from 11.9510.

The euro was bid at US$1.4911 from US$1.4892 overnight.

"It has been a very flat day with the rand range bound at 7.35-7.38 against the dollar," a local trader said.

Dow Jones Newswire reports that the dollar is mostly lower in calm trading on Monday morning as rising equities support demand for higher- yielding currencies, but the UK pound has resumed its slide after a brief hiatus last week.

Dollar gains in Asia were reversed in the European session as stock markets climbed and investors showed a continued willingness to embrace risk, while indications the Bank of England could expand its programme of quantitative easing returned to pressure sterling.

"With crude oil prices breaking higher last week and stock markets at their highs, the balance of probabilities suggest that the risk environment stays healthy this week and consequently, the [dollar is] under pressure," said currency strategists at ING in London.

There are no first-tier data releases in the US on Monday to inspire new directions, and investors are expected to continue to take their cues from equity markets and statements from monetary officials.

Bonds on front foot on short covering

A bit of short-covering kept bonds on the front foot in late trade on Monday as the market awaits a key Reserve Bank interest rate decision later this week.

By 3.40pm the short-term government R154 bond was bid at 7.550 percent from a previous close of 7.560 percent. The medium-term R157 was at 8.560 percent from 8.590 percent, while the long-term R186 was bid at 9.180 percent from 9.220 percent.

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