A weaker rand tracked a firmer US dollar in the midday session on Thursday, however the local currency remained range bound ahead of US non-farm payrolls data on Friday.

At 11:39 the rand was bid at 7.5448 to the dollar from 7.5137 at its previous close. It was bid at 10.4601 to the euro from its previous close of 10.4582 and was at 11.9804 against the sterling from 11.9676.

The euro was bid at $1.3839 from $1.3895 previously.

A local currency trader said: "The dollar has firmed, but the rand continued to be range bound at 7.51-61 against the dollar ahead of non farms tomorrow."

RMB analysts noted in their morning report that while the recovery in South Africa is more fragile than in many of the other commodity-based economies, the appreciation pressure on commodity linked currencies (such as the rand) is a factor in South Africa's medium term monetary policy outlook.

"Even if inflation were to rise above the 3 percent-6 percent target range sooner than we expect on account of "exogenous" factors such as electricity tariff increases, other administered tariff hikes or food price inflation, the SARB will in our view be very reluctant to hike rates with a rand at sub -8.00 vs. the US dollar," RMB said.

"Furthermore, those who still question the directional impact of rate moves on the rand should observe the sharp weakness in the AUD and NOK after the rate decisions," RMB concluded.

Dow Jones Newswires reported that in the European foreign exchanges, the dollar was mixed after rallying Wednesday on a better-than-expected US Automatic Data Processing jobs report.

Traders said the focus in the currency markets remained squarely on Friday's US nonfarm payrolls data.

At 09:10 GMT, the euro was trading at $1.3834, down from $1.3893 late in New York on Wednesday after hitting a fresh seven-month low at $1.3831. But the dollar was lower at Y90.80, down from Y90.98.

Bonds hold up despite softer rand

South African bonds were little changed from overnight levels by midday on Thursday, despite a weaker rand.

By 11:54 the short-term government R154 bond was bid at 7.325 percent and offered at 7.125 percent after closing at 7.210 percent on Wednesday and the medium-term R157 was at 8.370 percent after closing at 8.360 percent previously. The long-term R186 was bid at 9.180 percent and offered at 9.160 percent from 9.165 percent previously.