The South African rand gained in early trade on Wednesday after dovish commentary by the U.S. Federal Reserve buoyed emerging market currencies, while focus was also on a local financial review by the South African Reserve Bank.

The rand traded at 18.5300 against the dollar at 0648 GMT, about 0.4% stronger than its previous close.

The dollar index was flat against a basket of global currencies.

Dovish comments by the Fed poised markets to believe that interest rate cuts may come in the first half of next year in the world's biggest economy, placing a drag on the dollar.

Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to local movers.

Earlier On Wednesday, data from the South African Reserve Bank showed the country's M3 money supply fell to 6.08% in October from 7.67% in September. Private sector credit growth came in at 3.94% for October compared to 4.60% in September.

The central bank will also release its Financial Stability Review later in the day, which will outline risks to the local economy.

South Africa's benchmark 2030 government bond was unchanged in early deals at 10.025%. (Reporting by Tannur Anders; Editing by Bhargav Acharya and Eileen Soreng)