The rand firmed slightly against the greenback in midday trade on Tuesday as it continued to track the euro amid news that South Africa has exited the recession, according to the latest data from Stats SA.

At 11.54am the rand was bid at 7.4859 to the dollar from 7.4980 at its previous close. It was bid at 11.1810 to the euro from its previous close of 11.2029 and was at 12.3560 against sterling from 12.4473.

The euro was bid at $1.4935 from $1.4959 overnight.

South Africa's real gross domestic product (GDP) at market prices on a quarter-on-quarter (q/q) seasonally adjusted annualised (saa) basis rose by 0.9 percent in the third quarter of 2009 from a revised -7.4 percent (?6.4 percent) in the first and a revised -2.8 percent (?3.0 percent) in the second quarter, Statistics South Africa (Stats SA) data showed on Tuesday.

A local trader said: "We moved a fraction on the GDP figure, a cent or two, but historically GDP results do not have a major bearing on the rand. We continue to track the euro."

Dow Jones Newswires said that the euro was trading at $1.4931 at 09:25 GMT, down from $1.4961 in late New York trading on Monday.

Some traders believe the dollar's outlook remains bearish. "The fundamental picture for the US dollar is still not strong; the Fed is unlikely to move on rates anytime soon and US government yields remain near record lows," said Danica Hampton, a strategist at the Bank of New Zealand.

She said ahead of the US Thanksgiving holiday on Thursday, currency markets would be focused on the raft of upcoming US data, including third-quarter gross domestic product, consumer confidence reports and the Federal Open Market Committee minutes.

Bonds slowy recover

Bonds were still weak but were stabilising by noon on Tuesday in what a trader said was post auction activity seeing more buyers moving into the market.

By 11.55am, the short-term government R154 bond was bid at 7.350 percent from a previous close of 7.230 percent. The medium-term R157 was at 8.430 percent from 8.370 percent at its previous close, while the long-term R186 was bid at 9.130 percent from 9.050 percent before.