The rand has in May lost more than 7% against the dollar, as investor sentiment soured over factors including a heightened power crisis and U.S. allegations, denied by South Africa, that it supplied weapons to Russia last year.

At 1601 GMT, the rand traded at 19.7800 against the dollar, about 0.5% weaker than its previous close, after earlier falling as low as 19.8500 to the dollar.

The rand touched an all-time low of 19.8600 to the dollar on Tuesday.

The dollar was last trading up around 0.5% against a basket of global currencies, near a two-month high after data showed European inflation is cooling quicker than expected.

Data showing China's manufacturing sector had not rebounded, as some investors wanted, contributed to Wednesday's rand weakness, said Casparus Treurnicht, a portfolio manager at Gryphon Asset Management.

China is South Africa's biggest trading partner.

Shares on the Johannesburg Stock Exchange also slid.

The blue-chip Top-40 index closed down 1.30%, while the broader all-share index ended the day 1.15% lower.

Weakness came largely from the industrials sector, which closed almost 3% lower.

South Africa's benchmark 2030 government bond was marginally stronger, with the yield down 1.5 basis points at 11.300%.

(Reporting by Tannur Anders and Alexander Winning; editing by Barbara Lewis, Nellie Peyton and Shilpi Majumdar)