At 1625 GMT, the rand traded at 14.3200 against the dollar, roughly 0.5% lower than its previous close.
Fears over the spread of the highly infectious Delta coronavirus variant have dented global sentiment at a time that markets are on edge because of a hawkish tilt from the U.S. Federal Reserve. [FRX/]
South African scientists said at the weekend that the Delta variant seemed to be starting to dominate new infections, after which President Cyril Ramaphosa tightened restrictions for 14 days.
The country, the worst-hit on the African continent in terms of recorded cases and deaths, is in the grip of a third COVID19 wave that is expected to surpass a severe second wave that peaked in January.
Johannesburg-listed stocks rose after economic data showed disposable income rose 2.3% year on year in the first quarter, which, together with low interest rates and subdued inflation, pushed household consumption spending higher.
That had a positive impact on retailers, with Walmart majority-owned Massmart, Famous Brands, Truworths, Mr Price, TFG, Pick n Pay, Woolworths and pharmacy group Clicks up between 6.53% and 3.39%.
"Household finances will improve marginally during the year as disposable income will be supported by the gradual recovery in economic activity," Nedbank economists said in a note.
They cautioned, however, that "the pace of increase will partly be contained by subdued investment activity and rising COVID-19 infections".
Overall, the Johannesburg All-Share index rose 1.12% to 66,548 points, while the Top-40 index gained 1.13% to 60,495 points.
In fixed income, the yield on the benchmark 2030 government bond dipped 1 basis point to 8.95%, reflecting a slightly firmer price.
(Reporting by Olivia Kumwenda-Mtambo, Nqobile Dludla and Alexander Winning; Editing by Kirsten Donovan and Angus MacSwan)
