The rand joined global markets in adopting a wait and see approach ahead of US non farm payrolls data out later in the US, noted a local trader.

At 09:02 the rand was bid at 7.6683 to the dollar from 7.6506 at its previous close. It was bid at 10.5145 to the euro from its previous close of 10.5411 and was at 12.0458 against the sterling from 12.0733.

The euro was bid at $1.3723 from $1.3742 previously.

A local currency trader said: "Being Friday we are adopting a wait and see approach. Markets are edgy, with emerging markets being hit quite hard yesterday and overnight.

"The range is 7.58-7.75 ahead of US payrolls data out later."

RMB analysts noted in their morning report that Dow Jones Newswires reported that markets are nervous. Fears are that the Club Med countries are near a tipping point as fiscal concerns spread from Greece to Portugal and Spain. "In this environment the smallest hiccup can generate massive moves?and yesterday it was a rise in the US weekly jobless that contributed to equities, commodities and currencies having their biggest wobble since the crisis," Analysts John Cairns and Nema Ramkhelawan said.

"We now are likely to see a morning of nervous stability in front of the US non-farm payroll figures mid-afternoon. Expectations are for the number of employed to be flat to slightly positive ? a revised Reuters poll shows a consensus for +5,000, the Bloomberg consensus is for +15,000. In this environment any surprise ? particularly a bad one ? will have major consequences.

"Risks are heightened because this number includes the annual benchmark revisions which could alter last year's data. US dollar/rand for now is a refection of Euro/US dollar ? the reattachment being complete?but afternoon trade could see us responding to US equities. Caution is certainly justified.

Key resistance is at US dollar/rand 7.76 but could easily be broken. Multiple support levels on the way down would similarly struggle to hold," Cairns and Ramkhelawan concluded.

Dow Jones Newswires reported that the dollar and euro were stronger against the yen as investors squared yen-long positions after steep gains overnight by the Japanese currency when investors fled risky assets amid stock falls and sovereign-credit worries.

But dealers said the bias remains yen-positive as risk appetite is still low due to lingering concerns European public finances.

"The European Commission Wednesday approved Greece's plan to reform its fiscal health, but the plan is unrealistic," said Yuji Saito, head of foreign exchange trade at Calyon in Tokyo. "Along with Portugal, Italy and Spain, they could get a cut in ratings any time."

Indeed, the euro briefly fell below $1.3700 for the first time since May 20, showing investors' increasing concerns about the euro-zone periphery.

Investors will be closely watching for US nonfarm payrolls data for January due at 1330 GMT. If the report misses economists' forecasts as it did last month, the yen would benefit most, dealers said. Economists in a Dow Jones Newswires poll expect payrolls to be unchanged in January from December.

Bonds weaker on risk aversion

South African bonds were between 3.5 and 5 basis points weaker in early trade on Friday as a host of negative factors weighed on the market, including the softer rand and higher risk aversion.

By 08:52 the short-term government R154 bond was bid at 7.250 percent and offered at 7.230 percent after closing at 7.190 percent on Thursday and the medium-term R157 was at 8.390 percent after closing at 8.340 percent previously.

The long-term R186 was bid at 9.195 percent and offered at 9.165 percent from 9.130 percent previously.