At 0741 GMT, the rand traded at 18.9925 against the dollar, about 0.1% stronger than its previous close.

The dollar index was last trading down 0.17% against a basket of currencies.

The greenback has seen significant strength in recent weeks as tensions in the Middle East, strong U.S. economic data and sticky inflation sent investors scurrying towards the safety of the dollar.

The risk-sensitive rand, like most emerging market currencies, tend to take cues from the direction of the dollar and U.S. monetary policy in addition to local economic events.

There are no major data releases scheduled in South Africa for the rest of the week.

On the stock market, both the Top-40 index and the broader all-share index were up 0.14% in early trade.

South Africa's benchmark 2030 government bond was stronger in early deals, with the yield down 6 basis points to 10.645%.

(Reporting by Bhargav Acharya; Editing by Sharon Singleton)