JOHANNESBURG, April 18 (Reuters) - The South African rand strengthened early on Tuesday, reflecting a weaker dollar on global markets, before the release of a local business confidence index.
At 0600 GMT, the rand traded at 18.2775 against the U.S. currency , 0.2% firmer than its previous close.
On Monday the rand also took its cue from the dollar, falling more than 1.3% as U.S. economic indicators bolstered expectations that the Federal Reserve would raise interest rates in May.
The South African Chamber of Commerce and Industry will release March and February business confidence figures (ZABCI=ECI) at 0930 GMT, giving more insight into private sector sentiment in Africa's most industrialised economy.
Crippling power cuts by struggling state power utility Eskom were a major factor behind a drop in business confidence in January.
On Wednesday the focus turns to the March consumer price index (ZACPIY=ECI), which could affect whether the South African Reserve Bank hikes interest rates again in May.
