The South African rand strengthened on Friday, boosted by a weaker dollar and a rebound in gold prices, after U.S. Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank's September meeting.

The rand was range-bound for much of the week, even after Africa's most industrialised economy recorded the highest consumer inflation print (ZACPIY=ECI), opens new tab since 10 months ago on Wednesday, as analysts said the Fed's remarks at its Jackson Hole symposium would be the main catalyst to drive the currency.

At 1556 GMT, the rand traded at 17.4525 against the dollar, about 1.5% firmer than Thursday's close and at its strongest level since early November 2024.

"The weak dollar is due to comments made by Powell where he said that it may be time to adjust policy.

The market is seeing it as very dovish," said Roy Topol, portfolio manager at Cratos Asset Management.

The dollar last traded about 0.8% weaker against a basket of currencies, while gold prices rebounded, further boosting the appeal of major gold producer South Africa's currency.

Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.

"Whether the U.S. rate cuts start in September, it doesn't really matter, but between roughly now and this time next year, I expect 100 to 125 basis points of rate cuts," said Johann Els, chief economist at Old Mutual.

Domestic investor focus next week will be on South Africa's business cycle leading indicator (ZALEAD=ECI), opens new tab, producer inflation (ZAPPIY=ECI), opens new tab numbers, money supply (ZAM3=ECI), opens new tab and private sector credit (ZACRED=ECI), opens new tab data, and trade balance (ZATBAL=ECI), opens new tab and budget balance (ZABUD=ECI), opens new tab figures.

The Johannesburg Stock Exchange's Top-40 (.JTOPI), opens new tab index closed up about 1%.

South Africa's benchmark 2035 government bond also firmed as the yield fell 7 basis points to 9.57%.