The rand was firm but range bound against major currencies in late trade on Wednesday, still benefiting from speculation that India's Bharti Airtel might pitch an offer for local mobile services group MTN.

MTN confirmed on Monday that the two parties are engaged in exploratory discussions. If the talks come to anything, it could be the largest foreign direct investment ever in the country.

By 3.55pm the rand was bid at 7.5200 to the dollar from a previous close of 7.5075. It was bid at 11.5900 to the euro from a previous 11.6356 and at 14.7063 against sterling from 14.7629 before.

The euro was bid at US$1.5399 from US$1.5530 overnight, while gold was quoted at $867.85 a troy ounce from $876.05 overnight.

ETM analysts said in their morning report that despite some robust importer demand in recent weeks, the USD-ZAR still managed to crack below support at 7.5000.

"Again it has been foreigners who have helped the local unit recover," they noted.

News that Bharti Airtel was looking to launch a massive bid for a controlling stake in mobile phone operator MTN was among the main catalysts for the rand strength, with the bid expected to be the largest on record for an SA company.

"That the bid would have been rejected by shareholders and analysts for being too low, simply means that if the deal were to go ahead, that the inflows may be even bigger than the $19.0-billion quoted in the Financial Times yesterday," said the analysts.

Bonds in tight range; eye ECB, BoE

Bonds gave back a little ground during the course of the day on Wednesday, but the moves were all marginal due to lack of direction.

By 3.51pm the short-term government R153 bond was at 10.310 percent from its previous close of 10.295 percent, while the medium-term R157 was at 9.425 percent from its previous close of 9.440 percent. The longer-term R186 bond was at 9.250 percent from its previous close of 9.260 percent.

I-Net Bridge