The rand was marginally firmer in noon trade on Monday as some risk appetite returned to markets after news at the weekend of a globally co-ordinated plan to pull Europe and the rest of the globe out of the credit mire.

At 11.55am on Monday the rand was bid at 9.2357 to the dollar from a previous close of 9.2680. It was bid at 12.5837 to the euro from a previous 12.5688 and at 15.9142 against sterling from 15.8567 before.

The euro was bid at US$1.3618 from US$1.3570 overnight, while gold was quoted at $865.35 a troy ounce from $851.85 overnight.

RMB said in its morning commentary the rand is holding steady, but with the VIX index showing record readings again on Friday (76.94), previous resistances up to 9.4400 could be retested, but that there is also a positive picture that could emerge.

"But as mentioned before any break of 9.1600/9.1800 supports can see a deeper correction from the current rand oversold position," they add.

The analysts feel that one bit of positive information could be the nationalisation of UK banks - which is due for announcement this morning - bringing some sort of solace to financial markets.

Dow Jones Newswires reports that the dollar is mostly lower while the euro and the pound have risen in Europe Monday as financial markets give an initial vote of confidence to the credit crunch packages agreed over the weekend.

As global risk appetite has shown signs of tentative improvement, equity markets have risen and carry trades have returned.

A five-point plan of action from Group of Seven finance ministers in Washington, followed by an agreement by euro-zone leaders in Paris to bail out their banks as needed both helped to lift market confidence that the authorities are now taking action to resolve the credit crisis.

Analysts warned, however, that details of the euro-zone package remain sketchy and that the market could well be disappointed again if they aren't implemented quickly.

Curve dis-inversion aids short end

Bond yields dis-inverted during the morning session on Monday as the short end was preferred over the medium end in light of continuing switch activity and fixed interest softness globally.

Bonds had started weakening to an extent after the unchanged rates decision on Thursday last week as the authorities appeared to pour cold water on any hopes rates would be coming down sooner and faster than expected.

By 12.05pm the short-term government R153 bond was at 9.255 percent from its previous close of 9.260 percent. The medium-term R157 was at 9.020 percent from 8.980 percent at Friday's close and the long-term R186 was bid at 8.770 percent from 8.710 percent before.

I-Net Bridge