At 15.24 GMT, the rand traded 0.58% firmer at 14.0575 to the dollar after ending Monday’s session at 14.1400.
The rand has gained more than 9% against the dollar since the start of the year, recovering sharp losses recorded last December after President Jacob Zuma suddenly fired the finance minister.
The currency could come under renewed pressure in 2017 amid concerns about sluggish domestic economic growth and uncertainty over the impact of the policies that incoming US president Donald Trump will pursue.
“Sentiments from different directions suggest that the Trump administration is likely to push policies that will might not be favourable to emerging market economies like South Africa,” AgriSA analyst Hamlet Hlomendlini said in a note.
Trade was lacklustre on South Africa’s debt market, with the yield for the 10-year benchmark government bond closing flat at 8.995%.
The blue-chip JSE Top-40 stock index was up 0.98% at 43,755 and the broader All-share index added 0.93% for 50,343.
Major movers on the bourse included investment heavyweight Brait, up 2.53%, and property developer Growthpoint, up 2.7%.
About 191 million shares changed hands, around 64% of last year’s average daily volume.
