At 1513 GMT, the rand traded at 14.2700 against the dollar, about 0.3% stronger than its Tuesday close.
The rand often shrugs off local factors, including better-than-expected second-quarter gross domestic product (GDP) figures on Tuesday, and responds to global factors instead.
Elsewhere, investors were moving away from riskier assets over uncertainty over the pace of economic recovery, lifting the greenback, which the rand tends to track.
On Wednesday, South African Reserve Bank (SARB) Governor Lesetja Kganyago made the case for adopting an inflation target of 3% or 4% with a margin of error either of 1 percentage point either side, as oppose to the 3% to 6% target used currently.
With inflation currently at 4.6%, if adopted that would mean South Africa was already above its target range. Interest rates in South Africa are currently at a record-low of 3.5% after being slashed following a collapse in inflation due to COVID-19.
Investors will also be watching domestic data releases on Thursday, including second-quarter current account and July manufacturing numbers, following Tuesday's GDP reading of 1.2% growth in April-June quarter on quarter.
Government bonds also edged up, with the yield on the 2030 instrument at 8.825%.
Stocks, however, fell. The Johannesburg Stock Exchange's Top-40 Index was down 1.6% to 59,379 points and the broader All-Share Index closed 1.5% lower at 65,525 points.
Miners were the biggest losers on the blue-chip index, hurt as the gold price slipped to a two-week low. The stronger dollar and higher U.S. Treasury yields outweighed the boost to the precious metal from deepening concerns about global economic growth.
Gold Fields fell 4.4%, AngloGold Ashanti dropped 3.4% and Sibanye Stillwater lost 3.3%.
(Reporting by Alexander Winning, Editing by Timothy Heritage and David Gregorio)
