The rand was in ranges in midday trade seeking direction ahead of the weekend‚ according to analysts.
The local currency had been under-pressure most of the week but came back a tad in early trading after Chinese gross domestic product (GDP) numbers were within the expected range.
At 11:53 the rand was bid at R8.3176 to the dollar from its previous close of R8.3181. It was bid at R10.1467 to the euro from its previous close of R10.1518 and at R12.8446 against sterling from R12.8301 before.
The euro was bid at $1.2206 from its previous close of $1.2207.
“We consolidated a bit; just trying to find direction ahead of the weekend. The market is absorbing all the news from the week and there is a lot of scepticism ahead of the Monetary Policy Committee (MPC) meeting next week‚” said Bridget Taylor from Nedbank.
RMB said it expected the SARB MPC to keep the repo rate unchanged at 5.5 percent at the July 19 meeting. “The statement should be more dovish than in May on account of the positive inflation surprises‚ the moderation in global growth and downside risks to domestic economic momentum‚” the bank said.
Meanwhile‚ Dow Jones Newswires reported that Spain's banks increased their net borrowings from the European Central Bank in June as they experienced increased stress in the weeks leading up to the announcement of an EUR100 billion ($122 billion) bailout from the European Union.
According to data released on Friday by the Bank of Spain‚ net borrowings rose to €337.21bn in June‚ from €287.81bn in May and €47.78bn in June 2011.
Deposits in the ECB's marginal deposit facility fell to €27.79bn in June from €36.83bn in May. The central bank earlier this month cut its overnight deposit rate to 0 percent from 0.25 percent.
Bonds firm after strong ILB auction
South African bonds were firm in midday trade on Friday‚ after the weekly inflation-linked bond (ILB) auction at 11:00 attracted R4.4 billion in bids for the R800m ILBs spread between the I2025‚ I2038 and I2050 bonds.
At noon‚ the benchmark R157 bond was trading at 5.815 percent from Thursday’s close of 5.845 percent and Wednesday’s close of 5.870 percent. The R207 was trading at 6.840 percent from a previous close of 6.880 percent and the R186 was trading at 7.570 percent from its previous close of 7.680 percent.