The rand remained firm in late trade on Tuesday, helped in part by the news that South African mobile services provider MTN is in talks with India's Bharti Airtel which is reportedly hoping to pitch an offer for the local company.

However, the currency continued to trade in ranges and was off the day's best levels.

By 3.40pm the rand was bid at 7.5670 to the dollar from a previous close of 7.5510. It was bid at 11.7806 to the euro from a previous 11.7057 and at 14.9598 against sterling from 14.8858 before.

The euro was bid at US$1.5670 from US$1.5498 overnight, while gold was quoted at $877.30 a troy ounce from $873.80 overnight.

"The rand was a bit firmer today but still within ranges. The euro-rand was looking good but the European unit has recovered quite a bit. However, the MTN story has been helping sentiment a lot, even though a lot of people think it won't come to anything," a local currency trader said.

Dow Jones Newswires reports that the dollar was slipping versus its rivals in early New York trade on Tuesday.

Bonds consolidate off oversold levels

Shorter-dated bonds gave back some of their earlier gains during the afternoon on Tuesday, but the market on the whole was fairly positive in light of buying interest at the weaker levels.

By 4.11pm the short-term government R153 bond was at 10.300 percent from its previous close of 10.320 percent, while the medium-term R157 was at 9.435 percent from its previous close of 9.490 percent. The longer-term R186 bond was bid at 9.275 percent from its previous close of 9.310 percent.

I-Net Bridge