The South African rand was stronger in early trade on Monday, after private sector activity rose marginally in April.

The slowdown has coincided with a months-long stretch of stubborn inflation, putting pressure on the Fed to keep interest rates high despite a risk of hindering economic activity with expensive borrowing costs.

The Federal Reserve signaled interest rates could likely remain higher for longer than previously expected on stalling disinflation, but downplayed the possibility of rate hikes following an unchanged rate

The South African rand was stronger on Friday after U.S. nonfarm payrolls grew less than expected in April, boosting hopes that the Federal Reserve could cut interest rates soon.