The South African rand strengthened against the dollar on Friday, erasing earlier losses after a key report showed the US labor market cooled sharply over the past three months.

The South African rand was on the backfoot in early trade on Friday, as investors weighed the prospect of higher tariffs on exports to the United States after the country failed to clinch a trade agreement before Washington's deadline.

South Africa faces the highest rate in sub-Saharan Africa, reflecting Trump's strained relationship with the government of President Cyril Ramaphosa. Other African nations, including Nigeria, Ghana, Lesotho and Zimbabwe have been hit with a 15% tariff, which will also come into effect in seven days.