At 1543 GMT, the rand traded at 18.8850 against the dollar, about 0.54% stronger than its previous close.
The dollar last traded around 0.07% weaker against a basket of global currencies.
"The rise in U.S. rates has finally run out of steam. Some dovish Fed speak yesterday saw yields ease off 15+ year highs," Rand Merchant Bank analysts said in a research note.
"Whether this is a change in direction or just a pause remains to be seen. But global markets sigh with relief."
Like other risk-sensitive currencies, the rand often takes cues from global factors such as U.S. monetary policy and the direction of the safe-haven dollar.
Locally, data showed South Africa posted a trade surplus of 13.28 billion rand ($703.87 million) and a budget deficit of 47.33 billion rand in August.
Shares on the Johannesburg Stock Exchange fell, with the blue-chip top-40 index closing nearly 0.3% lower.
South Africa's benchmark 2030 government bond was stronger, with the yield down 23 basis points to 10.810%.
(Reporting by Tannur Anders and Bhargav Acharya; Editing by Sonali Paul and Alison Williams)
