By Sfundo Parakozov

JOHANNESBURG, Aug 22 (Reuters) - The South African rand

strengthened on Friday, boosted by a weaker dollar and a rebound

in gold prices, after U.S. Federal Reserve Chair Jerome Powell

pointed to a possible rate cut at the central bank's September

meeting.

The rand was range-bound for much of the week, even after

Africa's most industrialised economy recorded the highest

consumer inflation print since 10 months ago on

Wednesday, as analysts said the Fed's remarks at its Jackson

Hole symposium would be the main catalyst to drive the currency.

At 1556 GMT, the rand traded at 17.4525 against the

dollar, about 1.5% firmer than Thursday's close and at

its strongest level since early November 2024.

"The weak dollar is due to comments made by Powell where he

said that it may be time to adjust policy. The market is seeing

it as very dovish," said Roy Topol, portfolio manager at Cratos

Asset Management.

The dollar last traded about 0.8% weaker against a

basket of currencies, while gold prices rebounded, further

boosting the appeal of major gold producer South Africa's

currency.

Like other risk-sensitive currencies, the rand often takes

cues from global drivers such as U.S. policy and economic data.

"Whether the U.S. rate cuts start in September, it doesn't

really matter, but between roughly now and this time next year,

I expect 100 to 125 basis points of rate cuts," said Johann Els,

chief economist at Old Mutual.

Domestic investor focus next week will be on South Africa's

business cycle leading indicator, producer

inflation numbers, money supply and

private sector credit data, and trade balance

and budget balance figures.

The Johannesburg Stock Exchange's Top-40 index

closed up about 1%.

South Africa's benchmark 2035 government bond

also firmed as the yield fell 7 basis points to 9.57%.