Slightly up – currencies

The rand clawed its way back somewhat on Friday after recent sharp losses against the dollar, but remained bruised after the euro-inspired battering it suffered this week.

One analysts said that at this stage of the game he thought the rand would lose more ground this week on the back of the euro eroding further. he pegged the currency in a broad range next week between R6,90-R7,10 to the dollar.

Late on Friday the rand was trading at R6,7775 to the dollar, a few cents firmer on its late Johannesburg levels on Thursday.

It was a volatile week for the currency as it sank with the euro - the currency of SA's main trading partner - after French voters rejected the European Union constitution. The rand hit year lows of R6,9770 to the dollar on Wednesday.

The dollar firmed against the euro on Friday as investors continued to reward higher US interest rates and relatively positive growth prospects over Europe's political instability and economic torpor.

Against the resilient dollar the euro slumped to $1,2228, down 0,4% from late Thursday and creeping back toward eight-month lows of $1,2157 hit earlier this week.

Early in the session traders said Asian investors were protecting an option position of $1,2250. But after the option expired at 14h00 GMT, the euro drifted steadily down to a session low of $1,2205.