JOHANNESBURG, April 16 (Reuters) - The South African rand strengthened in early Thursday trade, supported by a weaker U.S. dollar and rising investor optimism that the war in the Middle East may be nearing an end.
o At 0611 GMT, the rand traded at 16.3350 against the dollar, about 0.3% higher than its previous close.
o The U.S. dollar weakened against a basket of currencies, falling to its lowest level in six weeks, making greenback-denominated commodities more affordable for holders of other currencies.
o Gold, a major South African export, rose on hopes the war might be ending, as Pakistani mediation in Tehran and signals from the Trump administration boosted expectations of a deal to reopen the Strait of Hormuz.
o The Minerals Council of South Africa warned on Wednesday that the war in the Middle East would significantly affect the industry's profitability this year.
o The council said miners' average monthly fuel bill, normally about 2.9 billion rand ($177.73 million), was expected to surge to roughly 4.3 billion rand ($263.53 million) in April and remain elevated for as long as disruptions persist in the Strait of Hormuz.
o South Africa's benchmark 2035 government bond was flat in early trading, with the yield at 8.405%.($1 = 16.3169 rand)
(Reporting by Anathi Madubela; Editing by Thomas Derpinghaus)
