The rand remained firm but range bound in noon trade on Monday, having started the week on the front foot after a strong close on Wall Street on Friday.

By 12pm the rand was bid at 7.7710 to the dollar from its previous close of 7.7520. It was bid at 12.3481 to the euro from a previous 12.3133 and at 15.4402 against sterling from 15.5502 before.

The euro was bid at US$1.5864 from $1.5811 overnight, while gold was quoted at $916.70 a troy ounce from $916.00 overnight.

RMB analysts said in their morning report that international markets seem to increasingly think that the worst is over in the credit crisis, with good financial sector results last week pushing the Dow to its highest levels since January.

"This is, of course, feeding through into the ZAR as foreign capital returns to our markets. USD/ZAR then held the 8.00 level last week and managed to reverse for a push once again at 7.73. Positive sentiment continues into today with great gains in global stocks and emerging market currencies strengthening," they said.

The Dow closed up 1.8 percent on Friday.

RMB warns, however, that some caution is advised. Even if sentiment is improved, this week global markets will have to navigate weak US housing data, record high oil prices and numerous central bank decisions which will highlight inflationary problems.

Local data, in the form of consumer and producer inflation data, will also be closely watched.

Bonds stuck in narrow range; await CPI

Bonds remained flat during the morning on Monday as investors preferred to wait for upcoming inflation data as a key signal of what action to take.

By 11.40am the short-term government R153 bond was at 9.985 percent from 9.975 percent at its previous close, while the medium-term R157 was at 9.270 percent from 9.255 percent at its previous close. The longer-term R186 bond was bid at 9.100 percent from its previous close of 9.080 percent.

I-Net Bridge