The South African rand strengthened on Wednesday after muted US economic data bolstered expectations of an interest rate cut by the Federal Reserve in December, weighing on the dollar.
At 1333 GMT the rand traded at 17.14 to the dollar, up 0.5% from Tuesday's close.
The dollar was down 0.2% against a basket of currencies.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy and economic data in addition to domestic releases.
"The focus at the moment appears to be on some downbeat data from the US, which has prompted investors to price in the rising probability that the Fed will reduce interest rates," ETM Analytics said in a research note.
Bets on a quarter-point Fed rate cut next month have firmed over the past few sessions, driven by weak economic data and comments from central bank officials backing monetary easing.
On the domestic front, all eyes will be on producer inflation numbers due on Thursday and credit, trade and budget data on Friday.
On the Johannesburg Stock Exchange, the Top-40 index was last up 1.3%.
South Africa's benchmark 2035 government bond also strengthened, with the yield falling by 3.5 basis points to 8.575%.
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