The volatile rand was weaker at midday on Thursday as further risk sentiment came through from Europe. 

The rand held below the key R8 per dollar level in early trade but reports that opposition to austerity measures continued to grow in the EU moved local markets. 

"The rand came off stronger in the morning but weakened as further risk aversion came through. There is an impetus that it will decline further during the day," a local trader said. 

At 11:36 local time the rand was bid at R8.0382 to the dollar from Wednesday's close of R7.9993. It was bid at R10.3998 to the euro from R10.3500 before, and at R12.9313 against sterling from R12.9047 previously. 

The euro was bid at US$1.12939 from Wednesday's close of $1.2936. 

RMB said concerns over Spain and Greece were rising and market moves today would be dominated by sentiment over Europe. 

The bank said that the Spanish government had taken over one of the country's largest banks and there were rumours that further bad debt provisioning would be imposed on the sector. 

The bank added that Greek politicians would make a last ditch attempt to form a coalition government today but it was almost certain that they were going to have another election. 

"At best, they'll have a new government by mid-June and it's a coin flip if the new authorities will accept the required austerity measures," the bank said. 

Dow Jones Newswires reported that the euro regained its composure during Asian trading on Thursday after falling for much of the week, but its upside was limited on continued concerns over the eurozone debt crisis and as weak Chinese trade figures fuelled worries over a slowdown in the world's second-largest economy. 

After hitting a fresh three-and-a-half-month low against the dollar on Wednesday, the common currency clawed back some of its losses on slightly improved risk sentiment after data earlier on Thursday showed Australia's unemployment rate in April fell to a lower-than-expected seasonally adjusted 4.9 percent, from 5.2 percent in March. 

Bonds off best levels as rand weighs

South African bonds remained firm in midday trade on Thursday, but were off the session's best levels as the weaker rand weighed. 

At 11:50, the benchmark R157 bond was trading at 6.510 percent from Wednesday's close of 6.540 percent. The R207 was bid at 7.640 percent and offered at 7.635 percent from a previous close of 7.675 percent and the R186 was trading at 8.300 percent from its close of 8.335 percent.