South African rand weakens as firmer dollar and hawkish Fed dampen risk appetite

JOHANNESBURG, June 24 (Reuters) - The South African rand weakened in early trade on Wednesday, pressured by a firmer dollar and hawkish signals from the U.S. Federal Reserve that dampened appetite for riskier assets.

* At 0715 GMT, the rand traded at 16.60 against the dollar , about 0.3% down from its previous close.

* The dollar index, which measures the U.S. dollar against a basket of currencies, climbed to its strongest in 13 months as investors positioned for possible Federal Reserve increases to U.S. interest rates and sought shelter from a selloff in technology shares.

* "Geopolitical risks are on the back burner for now, with markets reverting to economic fundamentals as drivers for the dollar," said Andre Cilliers, currency strategist at TreasuryONE.

* Like other risk-sensitive currencies, the rand often takes cues from global drivers.

* On the Johannesburg Stock Exchange, the Top-40 index was up 0.1% in early trade.

* South Africa's benchmark 2035 government bond was weaker in early deals, with the yield up 2.5 basis points at 8.36%.

(Reporting by Nilutpal Timsina Editing by David Goodman )