South African rand tracks dollar with no domestic data due

(Reuters) - The South African rand tracked the U.S. dollar early on Wednesday, with analysts saying global market factors were likely to set the tone for the day's trade, in the absence of domestic releases of data.

By 0705 GMT, the rand was at 18.3400 to the dollar, about 0.1% weaker than its previous close.

The dollar was up more than 0.1% against a basket of global currencies.

The U.S. currency has been under pressure on bets that the Federal Reserve will soon begin cutting interest rates, which has boosted emerging market currencies like the rand in recent sessions.

"It is offshore developments that are driving the rand much more than local developments at the moment, and so long as the dollar is on the slide, the rand holds the potential to retest the 18.00 handle before the end of the year," ETM Analytics said in a research note.

On the Johannesburg Stock Exchange, the Top-40 index was up about 0.2% in early trade.

(Reporting by Alexander Winning; Editing by Clarence Fernandez)