A firmer rand gained ground in midday trade on Tuesday, tracking US dollar weakness against the majors.

At 11:46 the rand was bid at 7.4408 to the dollar from 7.4800 at its previous close. It was bid at 10.3844 to the euro from its previous close of 10.4359 and was at 11.8770 against the sterling from 11.9381.

The euro was bid at $1.3932 from $1.3921 previously.

A local trader noted that the rand had finally broken its earlier range against the dollar. "We saw US dollar weakness against the euro, and in fact other majors, leading to a bit of rand strength.

"We saw the local currency bounce off 7.46 against the dollar, and we need to break through this level to see the rand strengthen further."

Dow Jones Newswires reported that in the currency markets, the Australian dollar weakened marginally. At 0915 GMT, it was trading at $0.8812, down from $0.8914 in late New York trading on Monday.

Elsewhere, exchange rates were little changed. The euro was trading at $1.3928, down from $1.3931. The dollar was at Y90.60, down from Y90.61.

Bonds remain firm after auction

South African bonds were up to 4.5 basis points stronger in late morning trade on Tuesday, buoyed by some good demand. A local bond trader said the weekly government bond auction had been well received.

By 11:35 the short-term government R154 bond was bid at 7.145% after closing at 7.195% on Monday and the medium-term R157 was at 8.285% after closing at 8.340% previously. The long-term R186 was bid at 9.080% from 9.130% before.