South Africa's rand weakened on Friday in early trade, a day after hitting a 20-month low on the back of extended power cuts and worries over the risk of a global recession.

At 0624 GMT, the rand traded at 16.3750 against the dollar, 0.65% lower than its previous close. The rand touched 16.4700 on Thursday, its lowest since October 2020.

The dollar index, which measures the greenback against six counterparts, gained 0.12% and was trading at 104.87, as investors turned towards the safe-haven currency amid economic uncertainty.

State power utility Eskom extended power cuts on Thursday and Friday, citing a labour strike as the cause of the worst power cuts the country has seen in more than two years.

The Absa Purchasing Managers' Index survey on South African factory activity and data on vehicle sales by the auto association for the month of June are expected later in the day, which could shed some light on the health of the local economy.

The government's benchmark 2030 bond was lower in early deals, with the yield up 2.5 basis points to 10.580%. (Reporting by Bhargav Acharya in Bengaluru; Editing by Toby Chopra)