Stocks rose despite no-frills bank Capitec coming under pressure amid reports of a regulatory probe.

At 1527 GMT, the rand traded at 13.6750 per dollar, 1.12 percent firmer than its close on Monday.

The Fed will release minutes of its June meeting on Thursday, and investors will try to gauge whether it is still on track to raise interest rates twice more this year.

"While the local currency has scope to extend gains amid dollar profit-taking, the upside is likely to be limited by a combination of domestic and external factors," FXTM research analyst Lukman Otunuga said.

"With global trade war fears still weighing heavily on sentiment and stimulating risk aversion, emerging market currencies like the rand are likely to continue feeling the heat."

The rand has also been hurt by weak local economic data, which has cast doubt on President Cyril Ramaphosa's ability to kick-start growth after a decade of stagnation.

In fixed income, the yield for the benchmark paper due in 2026 fell 5.5 basis points to 8.84 percent.

On the bourse, the benchmark Top-40 index rose 0.6 percent to 51,287 points while the All-Share index gained 0.58 percent to 57,489 points.

Gains on the bourse were seen from the bullion sector, which rose 1.15 percent on the back of a stronger spot gold price.

Harmony Gold rose 3.79 percent to 22.98 rand and AngloGold Ashanti gained 2.34 percent to 115.52 rand.

Among the biggest fallers on the bourse, Capitec closed down 3.94 percent to 853.00 rand after a report about a probe into the bank sent shares down as much as 5 percent earlier in the session. The bank dismissed it as "misleading" and "fake news".

"Some nervous selling creeping in here, in a market where in general volumes have been thin," said Independent Securities trader Ryan Woods.