South African rand strengthens after Trump delays strikes on Iran energy sites

JOHANNESBURG, March 23 (Reuters) - The South African rand strengthened on Monday after U.S. President Donald Trump stepped back from plans to target Iran's power plants and energy infrastructure, boosting appetites for riskier assets.

• At 1344 GMT the rand traded at 16.82 against the dollar ZAR=D3, up 1.1% from its previous close.

• Trump said on Monday that Washington and Tehran have held constructive talks and that he had backed down from targeting Iran's power network.

• Key South African export gold XAU= pared some losses, falling 2% from 8% down before Trump's announcement.

• Analysts expect continued pressure on the rand after a torrid three weeks as rising oil prices create concerns of higher inflation in the net energy-importer.

• Domestically focused investor attention will be pinned on the central bank's rate decision on Thursday when economists polled by Reuters expect the bank to keep its main lending rate ZAREPO=ECI steady at 6.75%.

• The South African Reserve Bank's governor told Reuters earlier this month that the bank will revise its risk scenarios for its next policy meeting as the Middle East conflict continues to push oil prices higher.

• Other economic indicators due this week include the composite leading business cycle indicator ZALEAD=ECI on Tuesday, and producer inflation ZAPPIY=ECI data on Thursday.

• On the Johannesburg Stock Exchange, the Top-40 index .JTOPI was last down 0.3%.

• South Africa's benchmark 2035 government bond ZAR2035= strengthened, with the yield falling 16.5 basis points to 9.035%.