At 1602 GMT, the rand traded at 17.4600 against the dollar, marginally softer than its previous close.
The dollar index, which measures the currency against six rivals, was last trading down at 109.52, after data showed U.S. producer prices fell for a second straight month in August.
Emerging market currencies such as the rand have been volatile in recent weeks as investors seek the safety of safe-haven assets due to uncertainty surrounding the U.S. Federal Reserve's monetary policy, geopolitical tensions and inflation.
"I think the outlook is still unfavourable for the rand over the next six months," said Phoenix Kalen, global head of emerging markets strategy at Societe Generale.
On the local economic data front, July retail sales numbers rose 8.6% year on year, while analysts polled by Reuters were expecting an 8.4% increase.
Shares on the Johannesburg Stock Exchange fell, mirroring similar moves in global equities as markets remained wary of the Fed remaining aggressive to tame inflation.
Overall on the stock market, the Top-40 index ended 0.52% lower while the broader all-share index dipped 0.45%.
The government's benchmark 2030 bond fell, with the yield up 12.5 basis points to 10.320%.
(Reporting by Anait Miridzhanian in Johannesburg, Bhargav Acharya and Amruta Khandekar in Bengaluru; editing by Uttaresh.V and Emelia Sithole-Matarise)
