The rand gained strength in the afternoon session on Thursday, amid better-than-expected US data, a better-performing euro and stronger US equities.

At 3.34pm the rand was bid at 7.7872 to the dollar from 7.8385 at its previous close. It was bid at 11.4977 to the euro from its previous close of 11.5332 and was at 12.8405 against sterling from 12.8418.

The euro was bid at US$1.4782 from US$1.4720 overnight.

A local trader said: "We saw significant resistance at 7.92 against the dollar earlier today, having reached a high of 7.88 overnight.

"The rand has gained strength throughout the day following better-than- expected US data, the euro is on the up and US equities are higher. I think we will see 7.92 as a significant level to overcome, and might find instead that the rand/dollar trades lower over the course of the next few days.

Dow Jones Newswires reports that the euro extended its gains against the dollar and yen in New York trading on Thursday, buoyed by better-than- expected third quarter growth data from the US

The 3.5 percent expansion in US gross domestic product - more than the expected 3.2 percent - could stop the recent broad slide in riskier asset classes and currencies as investors, concerned over the pace of the global economic recovery, pulled back on risk.

US stocks looked set to open higher, also, while Treasuries were solidly in the red ahead of the final auction for the week, an offering of US$31 billion in seven-year notes.

GDP "broadly fits in the small positive sweet spot for risk," said Alan Ruskin, international strategist at RBS, adding that the figures are "not too strong to bring forward rate hike expectations, or too weak to encourage thoughts of the recovery faltering."

Bonds firm on hopes of rate cut

Bonds gained some handsome ground on Thursday in the wake of a raft of data releases that have raised hopes of a potential rate cut. An analyst also expresses some relief on talk of a managed slowdown to government borrowing.

By 4.29pm the short-term government R154 bond was bid at 7.165 percent from a previous close of 7.220 percent. The medium-term R157 was at 8.520 percent from 8.620 percent, while the long-term R186 was at 9.130 percent from 9.205 percent.

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