At 1441 GMT, the rand traded at 14.8325 against the dollar, 0.29% weaker than its previous close, even as local manufacturing production rose to a better-than-expected 12.5% year-on-year in June.
The prospect of higher U.S. interest rates tends to lessen the appeal of riskier, high-yielding currencies such as the rand and increase that of the dollar - a sentiment exacerbated by rising coronavirus cases both in the United States and elsewhere driven by the more infectious Delta variant.
"The rand reacted favourably to the (manufacturing) announcement albeit marginal as focus shifts to the U.S.," Warren Venketas, analyst at DailyFX, said in a note, adding the currency's future would remain highly dependent on the dollar and global risk aversion.
A strong U.S. jobs report last week and comments from two central bank officials have solidified expectations the U.S. Federal Reserve could soon start tapering its monetary stimulus.
A rally in the dollar spurred by this has steadied somewhat, and investors are looking to U.S. inflation data on Wednesday for further clues.
Government bonds strengthened slightly, with the yield on the benchmark 2030 instrument losing 1 basis point to stand at 8.950%.
Stocks closed higher, with the Johannesburg Stock Exchange's Top-40 Index climbing 1.65% to 63,541 points and the broader All-Share Index closing 1.35% higher at 69,602 points.
The blue-chip index was dragged upwards by e-commerce giant Naspers and its subsidiary Prosus, whose main listing is in Amsterdam.
Both rose more than 10% on the back of a rally in Chinese technology stocks. Prosus holds a 28% stake in Chinese internet behemoth Tencent.
(Reporting by Emma Rumney; Editing by Ana Nicolaci da Costa and Angus MacSwan)
