The rand was little changed from its morning levels by midday on Tuesday, tracking the euro as markets looked to consolidate.

At 11:34 the rand was bid at 7.6634 to the dollar from 7.7205 at its previous close. It was bid at 10.5409 to the euro from its previous close of 10.5577 and was at 11.9537 against the sterling from 12.0331.

The euro was bid at $1.3734 from $1.3652 previously.

A local currency trader noted that levels remained similar to those in the morning session, with markets looking to consolidate amid very little news flow. "Following euro moves over the past few days, markets are looking to consolidate, tracking news to determine the next direction.

"To the topside, we are looking at 7.72, and then 7.78 against the dollar," the trader said.

RMB analysts noted in their morning report that currency markets were in a nervous lull. Euro/US dollar is trading a very tight range at just under 1.3700 keeping US dollar/rand at the middle of its new 7.65 ? 7.85 range.

"The Eurozone fiscal problem theme, however, has spilled into equities with the Dow Jones index dropping below 10,000 for the first time since November.

"The threat then clearly remains to the upside on US dollar/rand although, until we get a fresh bout of concern, we might be able to make a few cents on the downside ? no news being good news," RMB analysts John Cairns and Nema Ramkhelawan said.

RMB said that Thursday was shaping up to be a key day. "Not only will we receive US retail sales data but the emergency EU summit will see ECB President Trichet in attendance and talk focussed on the fiscal problems. Expect begrudging approval of the PIGS (Portugal, Italy, Greece, Spain) budget plans and reassurance that the Eurozone is not threatened ? but frankly what else can they say?

"News flow is otherwise limited and there is not much else to say other than potential EUR/US dollar moves imply massive risks. The key level to watch is Euro/US dollar 1.3587. If this goes USD/ZAR should see 8.00, Cairns and Ramkhelawan concluded.

Dow Jones Newswires said in the European foreign exchanges, the euro and the pound gained against the dollar and the yen. At 0915 GMT, the euro was quoted at $1.3730, up from $1.3649 in late New York trade Monday, while the dollar was higher at Y89.70, up from Y89.26. Sterling was trading at $1.5598, up from $1.5584.