JOHANNESBURG, March 16 (Reuters) - The South African rand strengthened on Monday, as a softer dollar helped offset fading hopes of a near-term interest rate cut by the U.S. Federal Reserve due to the elevated energy prices.
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At 1448 GMT the rand traded at 16.77 against the dollar , more than 1% stronger than its previous close.
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The greenback was down 0.4% against a basket of currencies.
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Gold prices, a key South African export, were steady on Monday after recovering from an earlier near 1% drop, supported by a softer dollar.
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On the Johannesburg Stock Exchange, the Top-40 index was last up 1.3%.
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South Africa's benchmark 2035 government bond was also stronger, as the yield fell 2 basis points to 8.91%.
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Later this week local investor attention will turn to February inflation data and January retail sales numbers.
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South African inflation expectations continued to fall in the first quarter of this year, a survey showed on Monday, with the average forecast for inflation over the next five years reaching a record low.
Reporting by Anathi Madubela and Sfundo Parakozov; Editing by Ros Russell
Source: Reuters