South Africa's commodity-backed currency edged up in early trade on Thursday, supported by a weaker dollar and higher gold prices as investors fled to the safe-haven metal after steep tariffs imposed by US President Donald Trump took effect.

At 0750 GMT the rand traded at 17.6850 against the dollar, up roughly 0.5% on Wednesday's close.

"Notwithstanding the tariff uncertainty, the ZAR has clawed back more lost ground. Some of that is due to the USD retreating as traders focus on the rising probability of more rate cuts in the US, which will erode any remaining carry trade advantage the USD might enjoy," said ETM Analytics in a note.

US imports from South Africa face a 30% duty, the highest rate among Sub-Saharan African countries. Despite the government's failure to negotiate a better deal, the rand continues to recover, helped partly by South Africa's status as a major producer of precious metals.

The dollar last traded 0.2% weaker against a basket of currencies.

"In the short term, the ZAR will take advantage of the souring USD sentiment with the USD-ZAR trading back below the 17.8000 mark and will likely appreciate further, especially if SA’s terms of trade remain positive and partially help offset any of the trade impact that will surely arise in the coming months," said the note.

The central bank reported on Thursday that net foreign reserves fell to $65.143-billion at the end of July from $65.216-billion in June.

The Johannesburg Stock Exchange's Top-40 index was up 0.6%

South Africa's benchmark 2035 government bond was slightly stronger in early deals, with the yield up 2 basis points at 9.655%.US