The rand declined for the first time in four days, retreating from a three-month high, as European Union leaders prepared to gather for their first debt-crisis summit of the year, curbing demand for risk-assets. South Africa’s currency slid as much as 0.7 percent and traded 0.5 percent weaker at 7.7915 as of 8:34 a.m. in Johannesburg. The rand advanced 2.5 percent last week, reaching 7.7435, its strongest since Oct. 30. EU leaders gather in Brussels today for their first summit of 2012 to put the finishing touches on a German-led deficit- control treaty and endorse a 500 billion-euro ($661 billion) rescue fund to be set up this year. Greece and its private creditors said Jan. 28 they expect to complete a deal in coming days after bondholders signaled they would accept a bigger cut in their debt holdings. “Most of the focus will remain on the EU summit and any indications of a possible setback in the Greek talks,� Nomvuyo Guma, a currency strategist at Standard Bank Group Ltd. in Johannesburg, said in e-mailed comments. “With markets already nervous, however, if today’s euro sentiment data turns out to be worse than expected, the risk lies in a sell-off of risky assets.� Consumer confidence in the euro-area is expected to remain unchanged at minus 20.6 for January, according to Bloomberg consensus estimates. Economic confidence probably increased to 93.8 from 93.3 previously. Bonds were steady, with the yield on 6.75 percent notes due 2021 unchanged at 7.71 percent. To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net; To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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