South African rand was off its worst levels late on Friday afternoon on profit taking ahead of the weekend.

Market analysts nevertheless expected the local unit, which reached its weakest level since July 2003 late on Friday morning, to remain under pressure in the coming week.

At 15:46 (1346GMT), the rand was bid at 7.6160 per dollar from an overnight close of 7.5400 on Thursday and 7.3700 on Wednesday.

It earlier traded just above 7.70 per dollar for the first time since July 21, 2003. The rand was bid at 9.7623 to the euro from a previous 9.6611 and at 14.4899 against sterling from Thursday's 14. 4620.

"I still think the rand is in a weaker trend. This amounts to nothing more than profit taking ahead of the long weekend," ETM market analyst George Glynos said.

He continued that structural imbalances in the economy and the fact portfolio increases had turned negative in recent weeks, particularly in bonds, were keeping the local unit on the back foot. Portfolio inflows are necessary if South Africa's current account deficit is to be financed.

Political risk after the corruption case against former Deputy President Jacob Zuma was thrown out of court on Wednesday was adding to the rand's woes as were emerging market jitters.

Glynos expected the rand to trade in a 7.50 to 7.80 range in the new week, with the risk of a break to the upside.

Source: Xinhua