Self-consistent correlation potentials for H₂ and LiH for various inter-atomic separations are obtained within the random phase approximation (RPA) of density functional theory. The RPA correlation potential shows a peak at the bond midpoint, which is an exact feature of the true correlation potential,but lacks another exact feature: the step important to preserve integer charge on the atomic fragmentsin the dissociation limit. An analysis of the RPA energy functional in terms of fractional charge is given which confirms these observations. We find that the RPA misses the derivative discontinuity at odd integer particle numbers but explicitly eliminates the fractional spin error in the exact-exchange functional. The latter finding explains the improved total energy in the dissociation limit.