The rand was softer in midday trade on Wednesday, tracking a firmer dollar and still reacting to government proposals to do away with exchange controls, which was announced by Treasury at the Medium Term Budget announcement yesterday.

At 12:05 the rand was bid at 7.7266 to the dollar from 7.6590 at its previous close. It was bid at 11.4190 to the euro from its previous close of 11.3395 and was at 12.6230 against sterling from 12.5329.

The euro was bid at $1.4787 from $1.4811 overnight.

A local trader said: "The rand is still digesting comments from yesterday's Medium Term Budget announcement. The local currency broke through the initial 7.65 target, with the next level at 7.70.

"We were initially quiet this morning, but have weakened somewhat, tracking dollar strength against the majors," he said.

Bonds firm slightly

Bonds ticked a few basis points firmer on Wednesday morning on the back of better than expected consumer inflation data for September.

By 12:00, the short-term government R154 bond was bid at 7.310% from a previous close of 7.395%. The medium-term R157 was at 8.615% from 8.690%, while the long-term R186 was bid at 9.185% from 9.260%.

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