Johannesburg - The rand was firmer on Wednesday, recouping heavy losses in the previous session, as declining expectations that the US Federal Reserve will raise rates next week put pressure on the dollar.
Stocks fell, led by the retail sector leader, Mr Price, extending losses to a near seven-month low after flagging lower half-year profits.
At 17:03 GMT the rand was trading at 14.2900 per dollar, up 0.73% on its New York close on Tuesday.
"The market is on edge. Everybody is looking to next week for the Fed meeting and ... if the US is going to hike (rates) or not," Treasury One currency trader Andre Botha said.
Lower US interest rate expectations boost investors' appetite for emerging markets assets, which offer higher returns but carry more risk.
The South African Reserve Bank is also due to announce its interest rates decision next week.
On the stock market, the benchmark Top-40 index fell 0.63% to 45 985 points, while the All-Share index dropped 0.58% to 52 501 points.
Budget retailer Mr Price dropped 5.64% to R150.32 after saying that half-year earnings were unlikely to exceed the previous year.
"International retailers have raised the bar. And how Mr Price reacts will depend on its appetite to spend on refurbishing stores to create a better shopping experience," said Siboniso Nxumalo, Co-Head of Old Mutual Investment Group's Global Emerging Markets boutique.
Meanwhile shares in fashion retailer Truworths International Limited fell 4.07 percent to R71.95, while Woolworths Holdings was down 4.2% at R80 and The Foschini Group slid 3.83% to R137.19.
Government bonds firmed, with the yield for the benchmark instrument due in 2026 dropping 6 basis points to 8.665%.
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