August 6, 2012 / 4:28 PM / in 8 years

S.Africa's rand steadies in tight ranges

* Rand recovers from earlier sell-off

* Currency seen at 8.11-8.21 per dollar range

JOHANNESBURG, Aug 6 (Reuters) - South Africa’s rand was steady against the dollar on Monday, tracking earlier gains by the euro, although gains were limited by nagging fears that European policymakers would be unable to successfully resolve the region’s debt problems.

The euro hit a one-month peak against the dollar earlier in the session, adding to Friday’s rally, before paring some gains.

At 1552 GMT the rand had clawed its way back to 8.1376 per dollar, finding support at 8.12, not far away from Friday’s New York close of 8.1351.

“The euro is a bit stronger on the day, so (the rand) is following the euro basically,” said Jan Defouw, a trader at Standard Bank.

“First thing this morning was a bit of profit-taking, it has just come off this afternoon,” said Jan Defouw, a trader at Standard Bank.

The rand often tracks the euro, the currency of its largest trading partner.

Chronic debt problems in the euro zone have seen South African exports headed for the region decline, leading the Reserve Bank to lower its 2012 growth forecast to 2.7 percent from 2.9 percent and ease the repo rate to a 40-year low at 5 percent.

Traders expected the rand to trade in a 8.11-8.21 range per dollar for the next session.

In the fixed income market, the yields for both benchmark bonds flattened, with the three-year bond to 5.47 percent and that of the fourteen year paper to 7.29 percent. (Reporting by Vuyani Ndaba; editing by Ron Askew)

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