The rand continued to strengthen in afternoon trade on Friday‚ with the European Union deal remaining the main catalyst for improved risk appetite.

At 15:48 the rand was bid at R8.2081 to the dollar from its previous close of R8.3979. It was bid at R10.3920 to the euro from its previous close of R10.4569 and at R12.8708 against sterling from R13.0315 before.

The euro was bid at US$1.2665 from its previous close of $1.2446.

"The current rally could also be window dressing before the end of the month and quarter‚" said Mike Keenan‚ sub-Saharan currency strategist at Absa Capital.

"Markets will turn their attention to China’s PMI data for June‚ due out on Sunday‚ to gauge the direction of the global economy."

European leaders at a two-day summit in Brussels said they would speed plans to create a single supervisor for the eurozone's banks.

They agreed that the eurozone's bailout funds should be able to directly boost the capital of struggling banks‚ without adding to government debt‚ Dow Jones Newswires reported.

Bonds ignore May govt revenue surge

South African bonds ignored a 20.4 percent year-on-year (y/y) surge in SA government revenue after a modest 6.6 percent y/y rise in April‚ as well as news that fuel prices will be cut next month.

At 16:00‚ the benchmark R157 bond was trading at 5.980 percent from Thursday’s close of 5.985 percent. The R207 was bid at 7.105 percent and offered at 7.080 percent from a previous close of 7.115 percent and the R186 was trading at 7.930 percent from its previous close of 7.935 percent.

The rand was bid at R8.2054 against the dollar from R8.2690 at noon and Thursday’s close of R8.3979.