Graphic: renjith krishnan

The rand continued to strength in afternoon trade on Friday‚ with the European Union deal remaining the main catalyst for improved risk appetite.

At 15:48 the rand was bid at R8.2081 to the dollar from its previous close of R8.3979. It was bid at R10.3920 to the euro from its previous close of R10.4569 and at R12.8708 against sterling from R13.0315 before. The euro was bid at US$1.2665 from its previous close of $1.2446.

“The current rally could also be window dressing before the end of the month and quarter‚” said Mike Keenan‚ sub-Saharan currency strategist at Absa Capital. “Markets will turn their attention to China’s PMI data for June‚ due out on Sunday‚ to gauge the direction of the global economy.”

European leaders at a two-day summit in Brussels said they would speed plans to create a single supervisor for the eurozone's banks. They agreed that the eurozone's bailout funds should be able to directly boost the capital of struggling banks‚ without adding to government debt‚ Dow Jones Newswires reported. - I-Net Bridge