South Africa's rand firmed early on Friday, as the U.S. dollar sank to a one-month low amid signs the Federal Reserve might slow or even pause its monetary policy tightening in the second half of the year.

At 0634 GMT, the rand traded at 15.6850 against the dollar, 0.16% stronger than its previous close.

"The ZAR has capitalised on broader USD weakness overnight," ETM Analytics said in a research note, adding that there was potential for the rand to consolidate further around this level in the near term.

The dollar index, which measures the greenback against a basket of six major peers, fell as low as 101.43 for the first time since April 25.

A day after the U.S. central bank released the minutes from its May policy meeting, Bank of America said in a note the Fed would likely pause its tightening in September.

The South African government's benchmark 2030 bond was little changed in early deals, with the yield at 9.77%.

(Reporting by Anait Miridzhanian; Editing by Bradley Perrett)