The South African rand strengthened in early trade, largely due to a softer dollar and reduced expectations of a near-term interest rate cut by the U.S. Federal Reserve due to high energy prices. The rand traded at 16.89 against the dollar, about 0.3% up from its previous close. The weaker dollar encouraged traders to unwind positions that had been hedging against increased risk aversion. Gold prices remained steady, supported by the softer dollar. The Top-40 index on the Johannesburg Stock Exchange also rose by 0.7%.