The rand was trading at R6.84 against the dollar after Moody’s downgrade Spain’s bonds.
The rand maintained its slightly softer bias in midday trade on Wednesday after Moody's Investors Service placed Spain's bond ratings on review for possible downgrade.
A local dealer however, pointed to slight volumes citing "typical year end markets".
"The news on Spain can never be good for the euro, but we are seeing a typical year end market." He pointed to a range of 6.82-86 against the dollar.
At 11:50 local time the rand was bid at R6.8464/$ from R6.8156/$ at its previous close. It was bid at R9.0993/€ from R9.1025/€ before and at R10.7321/£ from R10.7536/£ at its previous close.
The euro was bid at $1.3307 from $1.3356.
Dow Jones Newswires reported that the dollar rose against the yen and euro in Asia Wednesday on speculation that US interest rates may continue rising after the Federal Reserve reiterated overnight its commitment to a super-easy monetary policy to keep the economic recovery on track.
Moody's Investors Service placed Spain's Aa1 local and foreign currency government bond ratings on review for possible downgrade early on Wednesday.
It said the main triggers for placing the rating on review for possible downgrade were:
-Spain's vulnerability to funding stress given its high refinancing needs in 2011. This vulnerability has recently been amplified by fragile market confidence.
-A potential further increase in the public debt ratio should the cost of bank recapitalisation prove to be higher than expected so far, whether to meet higher-than-expected asset impairments or simply to retain the confidence of the wholesale markets.
-Increased concerns over the ability of the Spanish government to achieve the required sustainable and structural improvement in general government finances given the limits of central government control over the regional governments' finances.
