JOHANNESBURG, Aug 1 (Reuters) - South Africa's rand

firmed on Thursday as investors bet on a September interest rate

cut in the world's biggest economy after dovish comments by the

U.S. Federal Reserve on Wednesday.

At 1540 GMT, the rand traded at 18.20 against the dollar

, about 0.1% stronger than its previous close.

"The rand traded below the R18.20 mark for most of the day,

touching the R18.10 handle earlier. Across the board, other EM

(emerging market) currencies have also firmed," said Wichard

Cilliers, head of market risk at TreasuryONE.

Fed Chair Jerome Powell said on Wednesday that interest

rates could be cut as soon as September if the U.S. economy

follows its expected path.

Like other risk-sensitive currencies, the rand often takes

cues from global drivers like U.S. monetary policy in addition

to local factors.

On the domestic front, South African manufacturing activity

rose in July, a Purchasing Managers' Index (PMI) survey showed

on Thursday, as both domestic and global demand picked up.

On the stock market, the Top-40 index closed about

1.25% down.

South Africa's benchmark 2030 government bond was

stronger, with the yield down 6 basis points at 9.345%.