JOHANNESBURG - The South African rand edged up on ​Friday after the ⁠release of a higher-than-expected December U.S. inflation reading ‌while investors also watched rising geopolitical tensions between the United States ​and Iran.

At 1444 GMT the rand traded at 16.08 against the ​dollar , roughly ​up 0.4% on Thursday close, after trading flat in the early session.

The greenback was muted against a ⁠basket of currencies as the Personal Consumption Expenditure index, the Federal Reserve's preferred inflation gauge, rose 0.4% in December, on a month-over-month basis, compared to economists' estimate of a 0.3% ​rise.

The ‌rand often takes ⁠cues from ⁠global drivers such as U.S. policy and economic data.

U.S. President Donald ​Trump warned Iran that it must ‌reach a deal over its nuclear ⁠programme or "bad things" will happen, and appeared to set a 10-day deadline before the U.S. might take action.

"The U.S.'s posture towards Iran has some investors spooked that it may impact oil production, and Brent crude oil prices touched $72.0 p/b overnight," said ETM Analytics in a note.

"The implication is that it could keep inflationary pressures elevated ‌and affect interest rates which in turn, would negatively ⁠impact stock markets," the note added.

On ​the Johannesburg Stock Exchange, the Top-40 index was last up 1.3%.

South Africa's benchmark 2035 government bond was firm, with the ​yield ‌falling 4 basis points to 7.995%.