The rand was steady in cautious trade on Friday at midday, as a stable dollar provided little market direction for the local currency.

The dollar failed to break back through the $1.070 level against the euro, and showed little movement against the pound and yen, in what has been a volatile week.

Largely flat commodity prices also provided little incentive for the rand to appreciate.

Analysts at Nedbank Corporate and Investment Banking said the rand had been overshooting its targets in most of the week.

"However, going into the weekend the markets would most likely be cautious and there could be some position squaring," they said.

The bias toward the local unit had continued to improve along with global peers despite the backdrop of local politics, Nedbank said.

At 11.40am the rand was at R13.1686 against the dollar from R13.1386.

It was at R14.092 against the euro from R14.0836 and at R16.8646 from R16.8375 against the pound.

The euro was at $1.0702 from $1.0719.

The local currency has benefited from broad weakness in the dollar, as well as favourable sentiment towards emerging markets. The uncertainty about the pace of US interest rate increases has put pressure on the dollar.

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