JOHANNESBURG, Oct 4 (Reuters) – The South African rand recuperated some losses in early trade on Friday, ahead of a key U.S. payrolls data and after slumping on Thursday as tensions escalated in the Middle East.

By 0730 GMT, the rand traded about 0.5% firmer at 17.4275 against the dollar. Since the start of the week, however, the local unit was down nearly 2%.

“The ZAR had a tough week, largely driven by a USD resurgence fuelled by better-than-expected U.S. labour data and rising geopolitical risks,” said Andre Cilliers, currency strategist at TreasuryONE.

The dollar hovered near a six-week high ahead of a payrolls report that could give hints on the path of interest rate cuts in the world’s biggest economy.

The greenback was also supported by demand for safe-haven assets after an Iranian missile attack on Israel on Tuesday left investors assessing widening Middle East tensions and their impact on the global economy.

Like other risk-sensitive currencies, the rand often takes direction from global drivers in the absence of major local factors.

The local unit has gained more than 4.5% against the greenback over the last three months.

“The ZAR’s correction was overdue after a period of significant appreciation, and the nonfarm payroll data today will play a key role in determining its next move,” Cilliers added.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was about 0.6% up in early trade.

South Africa’s benchmark 2030 government bond was slightly softer in early deals, with the yield up 3.5 basis points to 9.19%.

(Reporting by Tannur Anders; Editing by Varun H K)