S.Africa rand seen holding its own versus dollar

JOHANNESBURG, July 23 (Reuters) - The South African rand hovered close to its firmest levels in two months against the dollar on Wednesday and should hold its own throughout the day.

At 0642 GMT, the rand traded at 7.4900 against the dollar, just 0.15 percent softer than Tuesday's close of 7.4785. Earlier on Wednesday, the rand had firmed to 7.4750, a level last seen on May 19, Reuters data showed.

"I would imagine that early this morning we're going to see some importer demand so we might see a bounce up to the 7.52/53 level, but there's certainly renewed interest now on the down (firmer) side with the rand's momentum," said Nedbank trader David Gracey.

"We are seeing an improved global picture, the oil price is coming lower, the dollar is strengthening a little bit, so the market, broadly speaking, is a little bit more risk tolerant," Gracey added, predicting a 7.43/53 range for dollar-rand on Wednesday.

The JSE's Top-40 September futures index ALSIc1 was up 0.67 percent ahead of the market opening at 0700 GMT, pointing to a possible firm start for domestic stocks.

Government bonds were firmer, and yields slipped in turn. The yield on the benchmark 2015 bond ZAR157= shed 5.5 basis points to 9.865 percent and that on the 2036 bond ZAR209= was down 4.5 basis points at 9.38 percent. (Reporting by Stella Mapenzauswa, editing by Mike Peacock)