At 1500 GMT, the rand traded at 13.8575 against the dollar, 0.52% firmer than its previous close. It hit a session-best 13.8175 earlier, its strongest since July 2019, as emerging markets rallied on easing fears of Fed rate hikes.
The U.S. dollar softened after dovish comments from Fed speakers supported the view that policy tightening in the United States was unlikely to happen any time soon.
The rand was also boosted by news that ailing state power firm Eskom had reduced its mammoth 484 billion rand ($34.95 billion) debt by up to 20%. More broadly, a rally in global commodities prices has also kept the rand supported.
"The Rand continues to grind its way lower as the steady supply of exporter Dollars bears down on the market almost on a daily basis. Sure there are days where minor risk aversion hits the ticker tape, but overall its path to least resistance is for more strength," said Standard Bank's Warrick Butler.
"Consistent and persistent inflation data will change that, but for now, don't hold your breath."
In bonds, the yield on the benchmark government bond due in 2030 was down 10 basis points to 8.86%, reflecting stronger prices.
Stocks rose slightly, with financial firms in particular boosted by the stronger rand. The Johannesburg Stock Exchange's Top-40 Index closed 0.08% higher at 60,106 points and the broader All-Share Index up 0.03% to 66,077 points.
Insurer Old Mutual led the blue-chip index higher, closing up 5.65%, with lenders Absa, FirstRand and Standard Bank all up between 2.5% and 3.7%.
Retailer SPAR Group closed just 0.3% higher even after reporting a 34.4% rise in half-year profit.
($1 = 13.8474 rand)
(Reporting by Mfuneko Toyana and Emma Rumney, Editing by William Maclean)
