The rand was softer in the afternoon session on Tuesday amid a slightly firmer US dollar.

The SARB's decision to keep interest rates unchanged at 7.0 percent was in line with expectations and was therefore already factored into the market, a local currency trader said.

At 3.46pm the rand was bid at 7.4450 to the dollar from 7.3484 at its previous close. It was bid at 11.0890 to the euro from its previous close of 11.0150 and was at 12.5130 against sterling from 12.3748.

The euro was bid at US$1.4891 from US$1.4966 overnight.

"We saw rand weakness throughout the day, with buying interest up to 7.48 against the dollar. The main driver however, was dollar strength against the euro while the repo rate announcement had already been factored into the market," a local trader said.

Dow Jones Newswires reported that the dollar is broadly higher Tuesday morning as equities wobble, optimism about the global economy falters and the market digests remarks from the head of the European Central Bank.

ECB President Jean-Claude Trichet welcomed Fed Chairman Ben Bernanke's support of a strong dollar on Monday. The euro dipped to a session low at $1.4854 Tuesday morning in the aftermath of Trichet's comments.

In an interview with French daily Le Monde published on its website, Trichet said he "noted with great interest" Bernanke's comments on Monday, describing them as "a very important statement from my colleague."

Bernanke said that the underlying strength of the US economy will help to ensure the dollar is strong, adding that the Fed will continue to monitor the currency's value closely. The Federal Reserve chairman rarely comments on the value of the dollar to avoid unsettling volatile currency markets and because the US Treasury Department handles currency policy and issues.