The rand was firmer against the dollar in late trade on Monday as risk appetite improved on the back of a globally co-ordinated plan to pull Europe and the rest of the globe out of the credit mire.

At 3.55pm on Monday the rand was bid at 9.1641 to the dollar from a previous close of 9.2680. It was bid at 12.5085 to the euro from a previous 12.5688 and at 15.9368 against sterling from 15.8567 before.

The euro was bid at US$1.3650 from US$1.3570 overnight, while gold was quoted at $850.65 a troy ounce from $851.85 overnight.

Dow Jones Newswires reports that the euro is much stronger against the dollar early Monday in New York following efforts by European authorities to prop up its banking system and avert a deep recession.

The German government Monday said it would guarantee up to €400-billion for interbank lending and would offer recapitalizations of up to €80-billion. The UK government said it will take stakes costing a combined £37-billion in the Royal Bank of Scotland Group PLC (RBS.LN), Lloyds TSB Group PLC (LLOY.LN) and HBOS PLC (HBOS.LN).

The news put risk appetite back into the markets, pushing global stock markets higher overnight, and leading to a wave of dollar-selling. Last week, as US and global stock markets were declining sharply, the dollar gained immensely as investors sought the greenback for its status as a refuge during turbulence.

Bonds little changed in late trade

Bond yields were little changed from their midday levels in late trade on Monday after they disinverted during the morning session 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 3.45pm the short-term government R153 bond was at 9.240 percent from its previous close of 9.260 percent. The medium-term R157 was at 9.030 percent from 8.980 percent at Friday's close and the long-term R186 was bid at 8.765 percent from 8.710 percent before.

I-Net Bridge