The rand is stronger in midday trade on Tuesday as traders look for direction in Europe and South African mining sector.
"The rand is reacting to the weakness in the euro, which is due to worries about Spain, but the biggest boost to the rand was the possibility that an end to the labour dispute at Lonmin was close," said Mark Kalkwarf, a senior portfolio manager at Iquad Group.
At 11.16am, the rand was bid at R8.21914 to the dollar from R8.2564 at Monday's close. It was bid at R10.7507 to the euro from its previous close of R10.8288 and at R13.3394 against sterling from R13.4130 before.
The euro was bid at $1.3080 from $1.3114 at Monday's close.
"The tension between China and Japan is bad for world growth, whatever is bad for world growth is bad for the rand," Kalkwarf said.
Bonds recover on auction and rand
The South African bond market recovered in midday trade on Tuesday after a good weekly bond auction at 11am, and a firmer rand.
The South African Treasury on Tuesday allotted R600 million worth of R2023 bonds at a clearing yield of 7.090 percent, R900 million worth of R214 bonds at a clearing yield of 8.340 percent and R600 million worth of R2048 bonds at a clearing yield of 8.590 percent.
The bids amounted to R2.115bn, R2.1bn and R2.315bn respectively.
At 11.44am, the benchmark R157 bond was trading at 5.420 percent from a worst level in the morning of 5.510 percent and 5.490 percent at Monday's close. The R207 was trading at 6.490 percent from Monday's close of 6.565 percent, and the R186 was trading at 7.525 percent from 7.590 percent at its previous close.
The rand was bid at R8.2394 from Monday's close of R8.2564 and Friday's close of R8.1978.