The South African rand strengthened in early trade on Monday ahead of the release of local manufacturing purchasing managers' index (PMI) and vehicle sales data for July.

The rand traded at 16.4650 against the dollar, up 0.6% from its previous close, as of 0502 GMT.

The Absa PMI survey, due at 0900 GMT, is expected to provide fresh insight into manufacturing conditions in Africa's most industrialised economy.

South African manufacturing sentiment deteriorated in June as weaker demand weighed on new orders, although lower oil prices boosted confidence about future business conditions.

Investors will also focus on vehicle sales data, due at around 1200 GMT, which will offer a snapshot of consumer demand for big-ticket items after sales rose 15.3% in June.

Nedbank economists forecast vehicle sales growth to moderate to 9.2% in July, primarily due to the high base reached last year and a less supportive economic backdrop.

"Even so, sales are expected to remain robust at 56,247 units, underpinned by the lagged effects of interest rate cuts and the availability of affordable imported models," they said in a note.

South Africa's benchmark 2035 government bond was weaker in early deals, as the yield rose 2.5 basis points to 8.605%.