JOHANNESBURG: The South African rand continued its recovery from last week's plunge early on Wednesday, as risk appetite returned to markets, but uncertainty over the impact of the Omicron coronavirus variant was expected to keep investors on edge.

At 0630 GMT, the rand traded at 15.7675 against the dollar, 0.77% firmer than its previous close.

The currency plunged to its weakest since October 2020 on Friday, breaching 16.00 to the dollar, as the world reacted with alarm to the news of the Omicron variant, which was first detected in southern Africa.

Calm has somewhat returned to markets, following remarks from South African health experts and some drugmakers that COVID-19 vaccines were likely to offer protection against any severe disease from the Omicron variant.

Government bonds were also firmer in early deals, with the yield on the 2030 instrument down 2.5 basis points to 9.745%.