At 0803 GMT, the rand traded at 17.5425 against the dollar, about 0.4% stronger than its closing level on Monday.
ETM Analytics said in a research note that a rise in domestic bond yields should ensure the rand retains its ability to attract portfolio inflows.
“Another factor worth considering is the performance of the gold price … versus an oil price, which remains more subdued to ensure that SA’s terms of trade remain supportive,” it added.
Gold prices hovered near a record high on Tuesday, while platinum also rose. Those precious metals are key South African exports.
Early on Tuesday, central bank data showed a leading business cycle indicator fell 0.7% in August, erasing the previous month’s increase.
While there has been a pickup in business confidence since the formation of a coalition government in June and strength in retail sales recently, other sectors like mining remain in a slump.
Later in the day a summit of the BRICS group of emerging economies kicks off in Russia with South African President Cyril Ramaphosa in attendance.
Ramaphosa will have a bilateral meeting with Russian President Vladimir Putin.
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