South Africa's currency slumped 3% in the previous four days on speculation US stimulus measures will taper off, while Africa's biggest economy stagnates.
Technical indicators suggested the slide was overdone.
"The past few weeks has seen everyone just extrapolating losses onward," John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said.
"The feeling seems to have shifted with the view being that the market is now over-extended. A buying opportunity for the brave."
The rand appreciated 0.2% to 9.8058 per dollar as of 9.45am in Johannesburg, paring its loss this month to 8.4%.
Yields on benchmark 10.5% government bonds due December 2026 dropped four basis points, or 0.04%, to 7.28%, snapping three days of increases.
R4.9-billion of SA bonds sold
The rand's relative strength index versus the dollar was at 78.99 on Thursday, above the 70 threshold that signalled it may be oversold.
The index has been above 70 since May 20.
The rand's stochastic oscillator also pushed above 70, implying an imminent reversal. The measure, which tracks the price of a security relative to its highs and lows during a particular period, has been above 70 since May 21.
Foreign investors sold a net R4.9-billion of South African bonds yesterday, the most in a day since September 13 2011, according to JSE data. – Bloomberg