At 1624 GMT, the rand traded at 17.2225 against the dollar, 0.59% stronger than its previous close.
The dollar index, which measures the currency against six major peers, was down about 0.2%. Fears of a Russian missile strike in Poland were dispelled on Wednesday as it emerged that it was likely a stray Ukrainian projectile, reversing a market flight to the safe-haven greenback.
South African retail sales fell by 0.6% year-on-year in September after rising by a revised 2.1% in August, statistics showed on Wednesday. Economists polled by Reuters had predicted sales would rise 1% year-on-year in September.
Two factors weighing on the sector are persistent power cuts that have constrained business activity, and rising interest rates that have dented consumer confidence.
On the Johannesburg Stock Exchange, the Top-40 index closed 0.45% lower, while the broader all-share dropped 0.54%.
SPAR Group Ltd was one of the biggest fallers, down more than 12% after the grocery retailer, which also operates in Poland, Switzerland and parts of the United Kingdom, reported a fall in full-year earnings and lowered its dividend.
Casparus Treurnicht, a portfolio manager at Gryphon Asset Management, said that some investors might be worried that Poland could be pulled into Russia's war in Ukraine.
"But for me there was quite a shock in the dividend declared... Then the South Africa business is also under pressure. Strip out the liquor business numbers, and they look like the weakest link," Treurnicht said.
Shares in fashion and food retailer Woolworths and in food producer Tiger Brands rose 3.8% and 2.8% respectively after the companies flagged higher headline earnings per share.
The government's benchmark 2030 bond was weaker, with the yield rising 9 basis points to 10.345%.
(Reporting by Alexander Winning, Nellie Peyton and Nqobile Dludla; Editing by Sherry Jacob-Phillips, Anait Miridzhanian, William Maclean)
