JOHANNESBURG, June 22 (Reuters) - The South African ​rand edged up ⁠on Monday as progress in U.S.–Iran ‌peace talks supported broader risk sentiment.

At 1403 GMT, ​the rand traded at 16.40 against the dollar, 0.2% ​stronger than its ​previous close.

U.S. and Iranian officials made "encouraging progress" at their first round ⁠of talks in Switzerland that ended early on Monday, mediators said, though tensions over Lebanon and the Strait of Hormuz remained.

The ​greenback ‌was steady against ⁠a ⁠basket of currencies, while Brent crude oil prices dropped over ​2%.

Like other risk-sensitive ‌currencies, the rand has ⁠been at the mercy of global market sentiment, particularly since the start of U.S.-Israeli attacks on Iran on February 28.

Domestically, investors will look to the composite leading business cycle indicator on Tuesday and producer inflation data on Thursday for clues on ‌the health of the economy.

On the Johannesburg ⁠Stock Exchange, the Top-40 ​index closed up 0.2%.

South Africa's benchmark 2035 government bond strengthened, as the yield fell 3.5 ​basis ‌point to 8.28%.