A firmer rand traded in a tight range in the midday session on Friday, tracking a slightly softer dollar against the majors amid a strong gold price. Markets are waiting for non-farm payrolls data out in the US later on Friday.

At 11.40am the rand was bid at 7.5569 to the dollar from 7.5778 at its previous close. It was bid at 11.2590 to the euro from its previous close of 11.2683 and was at 12.5585 against sterling from 12.5575.

The euro was bid at $1.4895 from $1.4871 overnight.

A local trader said: "The rand has strengthened a fraction this morning with the dollar slightly weaker against the majors.

"We have been pretty quiet and in a tight range, testing 7.55 against the dollar. Gold is flying and we will wait to see the results from non-farms data from the US later. Until then, expect trade to be pretty quiet," he said.

Earlier, Dow Jones Newswires reported that the US non-farm payrolls report, due at 13:30 GMT, may show 175 000 jobs cut in October, economists surveyed by Dow Jones Newswires said. While that would be an improvement on the 263 000 jobs lost in September, the unemployment rate is tipped to rise from 9.8 percent to 9.9 percent, menacingly close to the psychologically key 10.0 percent level.

If the unemployment rate comes in worse than expected, hitting or topping the 10.0 percent mark, the dollar would probably fall against its rivals, dealers said.

The possibility of better-than-expected figures lifting the dollar, however, could not be ruled out, dealers said. A separate employment report released on Wednesday by payroll giant Automatic Data Processing, showed the pace of private sector job losses easing to 203 000 in October, while a revised estimate showed 227 000 jobs lost in September, less severe than the 254 000 initially reported.

Mood lifts in bond market

Bonds were seven basis points stronger by noon on Friday as the firm rand and improved global risk appetite lifted the mood.

By 12:10, the short-term government R154 bond was bid at 7.030 percent from a previous close of 7.040 percent. The medium-term R157 was at 8.280 percent from 8.350 percent, while the long-term R186 was at 8.890 percent from 8.955 percent.

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