The South African rand rose slightly early on Thursday, as the dollar caught its breath after its rise in recent weeks.
At 0741 GMT, the rand was trading at 18.9925 against the dollar, about 0.1% stronger than its previous close.
The dollar index was down 0.17% against a basket of currencies.
The greenback has strengthened considerably in recent weeks as tensions in the Middle East, good US economic data and soaring inflation have pushed investors to rush to the safety of the dollar.
The risk-sensitive rand, like most emerging market currencies, tends to follow movements in the dollar and U.S. monetary policy, in addition to local economic events.
No major data is expected in South Africa for the rest of the week.
In the stock market, the Top-40 Index and the General Stock Index both rose 0.14% in early trading.
South Africa’s benchmark 2030 government bond was stronger in early trading, with the yield down 6 basis points to 10.645%.
