At 17:03 CAT, the rand traded at 18.24 against the Dollar, about 1.3% stronger than its previous close. The currency fell sharply on Thursday after local media reports suggested that a deal between the two parties was in jeopardy.

A DA party source close to the talks told Reuters on Friday that the party was still committed to negotiations over cabinet posts and was "not at the point of drawing lines in the sand and giving final ultimatums".

The comments came after the News24 website and the Business Day newspaper had reported that the ANC had backtracked on an offer to give the DA the trade and industry ministerial portfolio, angering the DA.

--Reuters--