BLBG:Rand Strengthens First Day in Three on Greek Talks, Commodities
The rand advanced against the dollar for the first time in three days on speculation Greece will secure international aid and gains in commodity prices.
South Africa’s currency appreciated as much as 0.4 percent and traded 0.3 percent stronger at 7.5352 as of 9:10 a.m. in Johannesburg. Against the euro, it gained 0.3 percent to 9.9973.
Greece and international creditors are working on the final draft of an agreement on budget and structural measures needed for a second aid package as Prime Minister Lucas Papademos is set to negotiate with leaders of the political parties to seek consensus on the required measures.
“Increasingly one gets the sense that the authorities in Greece and Europe will secure a deal in the coming days,” George Glynos, an analyst at ETM Analytics in Johannesburg, said in e-mailed comments.
Standard & Poor’s GSCI Index of commodities rose as much as 0.5 percent, a fourth day of gains. Raw materials account for 60 percent of South Africa’s exports, according to government data. The MSCI Emerging Markets Index rose 1 percent.
South Africa’s 6.75 percent bonds due 2021 declined for a fourth day, driving the yield up one basis point, or 0.01 percentage point, to 7.772 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
