The rand gained some traction in afternoon trade on Wednesday, firming sharply against the dollar as the latter slid to a 10-week low against the euro and Wall Street opened firmer.

By 3.40pm the rand was bid at 7.8010 to the dollar from a previous close of 7.8726. It's intraday best level so far has been 7.7720. It was bid at 12.3549 to the euro from a previous 12.4443 and at 15.5492 against sterling from 15.6991 before.

The euro was bid at US$1.5844 from US$1.5793 overnight, while gold was quoted at $935.35 a troy ounce from $940.70 overnight.

Dow Jones Newswires reports that the dollar fell to its lowest level against the euro in 10 weeks early Wednesday in New York after a weaker-than-expected US jobs report.

Data from payrolls giant Automatic Data Processing and consultancy Macroeconomic Advisers indicated private payrolls declined by 79 000 in June, well below economists' forecasts for a 20 000 decline.

This could bode ill for the official US jobs report for June due Thursday, which would spell more trouble for the greenback. Economists were already expecting a 55 000 decline in the government's nonfarm payrolls report, so Wednesday's private data suggest that may even be lower.

Analysts suggest that currencies are unlikely to show any sustained moves though as many market participants are probably squaring positions or withdrawing from the market ahead of the European Central Bank's policy meeting and June non-farm payrolls, both scheduled for Thursday.

Bonds firmer; eye stronger rand

Bonds recovered up to 12 basis points on Wednesday, in what traders said might be a reaction to Tuesday's oversold position. The firmer rand was also lending support to the bond market today, traders added.

By 3.45pm the short-term government R153 bond was at 11.770 percent from its previous close of 11.890 percent, while the medium-term R157 was at 10.760 percent from a previous 10.865 percent. The R186 was bid at 10.515 percent from a previous close of 10.635 percent.

I-Net Bridge