The rand was steady in Friday afternoon trade despite the decline in the euro which it normally tracks.
The rand firmed a bit as we go into the weekend. The market looks tired and we dont anticipate significant changes on the local market a local trader said.
At 15.37 local time the rand was bid at R8.3506 to the dollar from Thursdays close of 8.3506.
It was bid at R10.4628 to the euro from Thursdays close of R10.4660 and at R13.0745 against sterling from R13.0781 at Thursdays close.
The euro was bid at US$1.2531 from Thursdays close of $1.2538.
RMB said that the past two weeks were very volatile and the bank expected the uncertainty to remain high until there was clarity over the future of the eurozone.
Dow Jones News Wires reported that a slumbering euro-Swiss franc exchange rate was briefly awoken on Thursday sending the euro to a two-month high against the franc before eventually settling back near its starting point.
Meanwhile the euro once again slid compared with other major currencies amid concerns about a Greek exit from the eurozone and ongoing debt and recession worries throughout the common-currency zone.
An unexpected spike in the euro against the franc early in New York trading hours set off a frenzy of market speculation and uncertainty about who was behind the move in what has largely been a dormant trading pair since the Swiss National Bank set a floor in the exchange rate at CHF1.20.
Multiple traders said they didn't see any intervention from the Swiss National Bank which is often the immediate reaction to any move higher at this point in the euro-franc cross. That set off further speculation about what was behind the move from rumours of new taxes to discourage foreign depositors to the possibility of an imminent Greek exit from the euro.
Regardless of the reason for the sudden move "it is a clear sign it is a nervous market and a choppy market" said Omer Esiner chief market analyst at Commonwealth Foreign Exchange in Washington. With such nervousness you "get violent moves" Esiner added.
The euro had largely been anchored around CHF1.2010 for days with very little trading. It jumped to CHF1.2077 before falling back to trade at CHF1.2014 late in the day according to EBS via CQG.
In early September the Swiss National Bank instituted a floor in the euro-franc to fight what it saw was speculative moves into the franc that were strengthening the Swiss currency so much that it was hurting the country's economy particularly exporters. That floor was set at CHF1.2000 and was only broken once very briefly when the euro hit CHF1.1990 on April 5.
Bonds steady on position squaring
South African bonds were steady in afternoon trade on Friday as investors squared positions ahead of the long weekend in the US. The US celebrates Memorial Day the traditional start of the summer holidays on Monday.
At 15:33 the benchmark R157 bond was trading at 6.340 percent from Thursdays close of 6.340 percent. The R207 was trading at 7.550 percent from a previous close of 7.565 percent and the R186 was trading at 8.280 percent from its close of 8.305 percent.