The rand remained firm in the afternoon session on Monday, tracking a stronger euro against the greenback amid record gold prices.

At 3.35pm the rand was bid at 7.3865 to the dollar from 7.4237 at its previous close. It was bid at 11.0438 to the euro from its previous close of 11.0870 and was at 12.3485 against sterling from 12.4158.

The euro was bid at US$1.4951 from US$1.4920 overnight.

"The rand is firm on the back of dollar weakness particularly against the euro, while gold is back at record highs," a local currency trader said.

Dow Jones Newswires reported that the euro began the week stronger against the dollar in New York trading on Monday, as positive Japanese economic data released overnight reinforced investor confidence in a global economic recovery.

US October retail sales were up better then expected. Consumers started the fourth quarter in a better shopping mood than economists expected but they ended the third quarter in a worse mood. Retail sales increased 1.4 percent, above the 0.9 percent increase projected by Wall Street.

But September sales were revised down, to a 2.3 percent decrease from a previously estimated 1.5 percent tumble. And aside from automobiles in October, other sales rose just 0.2 percent. It was the third increase in a row, yet smaller than the 0.4 percent climb predicted.

Buying into weakness aids bonds

Bonds edged into the black during the afternoon session on Monday as local institutions looked to buy into weakness before the key repo decision on Tuesday.

By 3.50pm the short-term government R154 bond was bid at 7.250 percent from a previous close of 7.180 percent. The medium-term R157 was at 8.380 percent from 8.400 percent on Friday and from 8.440 percent in the morning, while the long-term R186 was at 9.060 percent from 9.010 percent before.