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.

* At 1448 GMT the rand traded at 16.77 against the dollar

, more than 1% stronger than its previous close.

* The greenback was down 0.4% against a basket of

currencies.

* Gold prices, a key South African export, were steady on

Monday after recovering from an earlier near 1% drop, supported

by a softer dollar.

* On the Johannesburg Stock Exchange, the Top-40 index

was last up 1.3%.

* South Africa's benchmark 2035 government bond

was also stronger, as the yield fell 2 basis points to 8.91%.

* Later this week local investor attention will turn to

February inflation data and January retail sales

numbers.

* 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)