JOHANNESBURG, April 15 (Reuters) - The South African rand weakened on Wednesday as the safe-haven U.S. dollar skimmed six-week lows, with markets focused on the prospect of renewed talks between the United States and Iran aimed at ending the war.
* At 0128 GMT, the risk-sensitive rand traded at 16.3650against the dollar, weakening 0.2% from its previous close. * The U.S. dollar skimmed six-week lows on Wednesday, havingsurrendered almost all the gains made since the Iran warerupted, as signs of another round of talks between Washingtonand Tehran lifted risk appetite. * U.S. President Donald Trump said on Tuesday talks withTehran on ending the war could resume this week. * Although talks in Islamabad last weekend failed to producea breakthrough, markets were clinging to hopes that diplomacycould yet deliver a resolution. * "With a possible second round of peace talks happeningagain in Pakistan later this week, operators are quietlypositive," Adam Phillips, treasury specialist at UmkhuluTreasury, said. * "All of this is keeping markets fairly static, however,with a slightly risk-on mood," Andre Cilliers, currencystrategist at TreasuryONE said. * On the Johannesburg Stock Exchange, the Top-40 index wasdown 0.23%. * South Africa's benchmark 2035 government bond wasmarginally firmer, as the yield fell 1 basis point to 8.405%.(Reporting by Anathi Madubela and Nilutpal Timsina; Editing by Andrew Heavens and Janane Venkatraman)
