JOHANNESBURG, Feb 5 (Reuters) - South Africa's rand gained against a weaker dollar on Wednesday, as investors awaited President Cyril Ramaphosa's national address on Thursday and closely watched developments between the U.S. and China in their dispute over tariffs.
At 1507 GMT, the rand traded at 18.55 against the U.S. dollar , about 0.7% stronger than its previous close.
The dollar last traded about 0.6% weaker against a basket of currencies after China retaliated to tariffs imposed by U.S. President Donald Trump.
Ramaphosa will deliver on Thursday the annual State of the Nation Address (SONA), the first under his coalition government. Investors will pay particular attention to comments on reforms and fiscal discipline.
"Rand sentiment hinges on SONA and U.S.-China trade war developments. Stronger messaging on reforms and fiscal discipline could support South African assets," said Andre Cilliers, currency strategist at TreasuryONE.
"Investors remain cautious, with global trade tensions keeping risk appetite subdued," Cilliers added.
On the stock market, the Top-40 index closed about 0.3% higher.
South Africa's benchmark 2030 government bond was firmer, with the yield down 4 basis points to 9.045%.
Reporting by Tannur Anders and Sfundo Parakozov Editing by Bhargav Acharya and Gareth Jones
Source: Reuters