The rand continued to firm in the afternoon session on Wednesday tracking the euro which broke through 1.5000 against the greenback, and amid a gold price that continued to find new record-breaking ground.

At 3.37pm the rand was bid at 7.3744 to the dollar from 7.4446 at its previous close. It was bid at 11.1088 to the euro from its previous close of 11.1326 and was at 12.3230 against sterling from 12.3492.

The euro was bid at US$1.5083 from US$1.4963 overnight.

Gold last quoted at $11181.25/oz.

A local trader said: "Rand strength is based on a stronger euro which broke the 1.5000 level and beyond against the dollar, while gold is well placed. We saw support at 7.34 against the dollar, and the rand looks strong short-term."

Earlier, Dow Jones Newswires said that the euro is again attempting to make a sustained rise above US$1.50 in Europe on Wednesday, as the price of gold rallies to a new record high and European and Asian stocks stage a rebound.

Global sentiment was also helped by rising speculation that the Reserve Bank of Australia will lift its interest rates by another 25 basis points when it meets next week.

Apart from helping the Australian dollar rise sharply against its US counterpart, this more hawkish mood helped to push the US dollar down to a 10-month low under Y88.01 and the dollar index down to a 15-month low at 74.66.

Sentiment wasn't helped by a downward revision to US third quarter GDP annual growth to 2.8 percent from 3.5 percent.

However, as the price of gold continued to power ahead to a new record over US$1180 an ounce, global stocks headed higher.

Bond rally stalls after CPI cheer

Bonds remained put during the afternoon session on Wednesday after initially gaining four basis points on news that CPI inflation had broken the 6 percent limit for the first time in 31 months.

By 3.41pm the short-term government R154 bond was bid at 7.280 percent from a previous close of 7.275 percent. The medium-term R157 was at 8.360 percent from 8.415 percent at its previous close, while the long-term R186 was bid at 9.075 percent from 9.095 percent before.