The South African rand firmed in early trade on Friday, buoyed by a weaker dollar, while locally focussed traders awaited the private sector purchasing managers' index (PMI).
At 0706 GMT, the rand traded at 16.2025 against the dollar FX_IDC:USDZAR, up about 0.5% from its previous close.
The U.S. dollar TVC:DXY was down 0.3% against a basket of currencies after a tepid U.S. jobs report cooled market expectations for a near-term Federal Reserve rate hike.
The rand, like other emerging market currencies, tends to take direction from global factors, including U.S. economic data and geopolitical developments.
Domestic investors will look to the June S&P Global whole-economy PMI (ZAPMIM=ECI) at 0715 GMT for clues on business conditions in the country.
A manufacturing PMI on Wednesday showed that South African factory sentiment deteriorated in June as weaker demand weighed on new orders, though lower oil prices boosted confidence about future business conditions.
South Africa's benchmark 2035 government bond (ZAR2035=) was stronger in early deals, with the yield down 2.5 basis points to 8.24%.