The South African rand firmed in early trade on Thursday ahead of local manufacturing production data due later in the session, even as oil prices rose and the dollar remained firm following renewed US-Iran tensions.

At 0624 GMT, the rand traded at 16.3450 against the dollar, about 0.5% up from its previous close.

Statistics South Africa will publish May manufacturing output data at 1100 GMT, offering investors clues on the health of Africa's most industrialised economy.

Economists polled by Reuters expect manufacturing output to have fallen 3.2% year-on-year. Nedbank economists forecast a 3% contraction.

"The sector continues to grapple with high domestic cost structures, caused by inefficient and expensive general economic infrastructure, which has systematically eroded the sector's price competitiveness," Nedbank economists said in a research note, adding that manufacturers have also had to absorb higher US tariffs and the recent surge in local fuel prices.

South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 4.5 basis points to 8.33%.