The South African rand was little changed in early trade on Wednesday, after tumbling on Tuesday on the back of soaring US Treasury yields.
At 0553 GMT, the rand traded at R19.07 against the dollar.
The dollar last traded around 0.08% stronger against a basket of global currencies.
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On Tuesday, the rand lost as much as 1.4% against the greenback on the back of a surge in US Treasury yields as investors turned away from riskier assets.
“ZAR ‘losses’ this week are really just USD gains,” said Rand Merchant Bank analysts in a research note, adding that continued hawkish Fed talk has kept alive the risk of another hike, strengthening the dollar.
The rand, like other risk-sensitive currencies, is often swayed by global factors like US monetary policy.
South Africa will release producer price inflation, money supply, trade balance and budget figures for August on Thursday and Friday, which will give clues on the health of the economy.
South Africa’s benchmark 2030 government bond was slightly weaker in early deals, with the yield up 1.5 basis points to 10.790%.
