TABJ July 29 - The rand has rallied to a three month high against the dollar in a stock market rebound.

The rand grew as much as 0.8 per cent to 7.283 per dollar, its highest level since mid-April. The rand traded 0.6 per cent up at 7.292 in latest trade.

"The risk trade is back on, which makes a high-yield market like South Africa attractive to investors," said Vivienne Taberer, a Portfolio Manager with Investec Asset Management. "South Africa is attracting huge foreign flows into the bond market and that helps the rand. Rumours of a foreign acquisition of a local bank are also good news for the currency."