Nov. 26 (Bloomberg) -- The rand gained for a third day as foreign investors bought the most South African bonds in seven weeks and euro-area finance ministers met to discuss an aid payment to Greece.
South Africa’s currency advanced as much as 0.3 percent and traded 0.2 percent stronger at 8.8582 per dollar as of 3:51 p.m. in Johannesburg, after declining less than 0.1 percent last week. Yields on benchmark 10.5 percent bonds due December 2026 fell two basis points to 7.62 percent.
Finance chiefs will brief the European Central Bank and International Monetary Fund on “further concessions” that would plug Greece’s deficit gap without forcing a writeoff of official loans, Austria’s Maria Fekter said before the latest round of talks on the country’s debt crisis. The euro area accounted for 22 percent of South Africa’s exports last year. Foreign investors bought a net 5.72 billion rand ($645 million) of the country’s bonds last week, the most since the period ended Oct. 5, according to data supplied by JSE Ltd.
“Bond buying has been the real driver and flows are still trickling in,” Ockert van Niekerk, a currency trader at PSG Online, said by phone from Cape Town. “We also have producer inflation data out later this week and guys still want to see what the full outcome on the Greek talks will be.”
Producer prices probably rose 4.7 percent last month from 4.2 percent in September, according to the median estimate of nine economists polled by Bloomberg. The data is due for release on Nov. 29.
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