Nov. 2 (Bloomberg) -- The rand pared a fourth day of decreases against the dollar as commodities including copper recovered on speculation that the price declines this week were exaggerated and as stockpiles dropped to an eight-month.
South Africa’s currency was little changed at 8.0540 per dollar at 8:26 a.m. in Johannesburg, after earlier losing as much as 0.9 percent compared with a close of 8.0539 in London yesterday.
Copper for three-month delivery gained as much as 2.7 percent in London as inventories monitored by the LME declined for a ninth session, extending the biggest monthly slide since June 2009. The metal plunged 5.4 percent over the previous two sessions, leading a slump in industrial metals, after a planned referendum on Greece’s bailout fueled concern that Europe’s debt crisis will worsen, dimming prospects for the metal’s demand. Mining accounts for half of South Africa’s export earnings, according to South African Revenue Service data.
“Emerging-market currencies and especially the rand do not respond or trade well in a high-risk environment,” Quinten Bertenshaw, a Johannesburg-based strategist at Tradition Analytics, wrote in a research note. “Just as quickly as the rand lost ground yesterday, it could recover.”
South Africa’s 6.75 percent bonds due 2021 fell for a fourth day, driving the yield less than one basis point, or 0.01 percentage point, higher to 7.987 percent.
--Editors: Ana Monteiro, Stephen Kirkland
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