The rand declined against the dollar for a second day, tracking the euro weaker amid concern the region’s governments and banks will struggle to raise funds and on speculation the debt crisis is spreading to Hungary. South Africa’s currency retreated 0.5 percent to 8.1672 per dollar as of 8:41 a.m. in Johannesburg. The euro, the currency of 30 percent of South Africa’s trade, approached an 11-year low against the yen and slumped versus 12 out of 16 manor peers after Greek Prime Minister Lucas Papademos warned his nation may face economic collapse as soon as March. The Hungarian forint dropped to a record against the euro yesterday after the European Union said it has no plans to resume aid talks with the government. “News flow out of Europe remains volatile but mostly poor,� George Glynos, an economist at Johannesburg-based ETM Analytics, wrote in e-mailed comments today. The rand is “a passenger in a far bigger move driven once again by developments in the euro zone rather than anything local,� he added. France plans to sell as much as 8 billion euros ($10.3 billion) of debt today in a test of appetite for its bonds as credit companies threaten to cut the nation’s AAA rating. Italy and Spain are among countries that in the coming weeks will sell debt that may reach 262 billion euros in the first quarter, according to Deutsche Bank AG forecasts. France’s credit outlook was lowered by Fitch Ratings on Dec. 16 on the “heightened risk of contingent liabilities� from the escalating euro-region crisis. Standard & Poor’s is reviewing the top ratings of both France and Germany. South Africa’s 13.5 percent bonds due 2015 dropped for a second day, driving the yield up three basis points, or 0.03 percentage point, to 6.89 percent. To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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