South African rand slightly weaker as dollar recovers

JOHANNESBURG (Reuters) - South Africa's rand was slightly weaker early on Wednesday, as the dollar edged up on the back of firm U.S. economic data. At 0625 GMT, the rand traded at 12.0100 versus the dollar, around 0.2 percent weaker than its New York close on Tuesday. The dollar index rose. The rand gained in the previous two sessions, buoyed by the announcement of an investment drive by President Cyril Ramaphosa and strong Chinese data, which boosted emerging markets. The International Monetary Fund lifted South Africa's economic growth forecast on Tuesday, citing the election of a new political leadership. Ramaphosa, who has pledged to revamp the local economy, recently appointed a team of finance experts to scour the globe for investment. Government bonds were flat early on Wednesday, with the yield on the benchmark instrument due in 2026 at 8.075 percent. (Reporting by Alexander Winning; Editing by Raissa Kasolowsky)