By Janice Kew Dec. 5 (Bloomberg) -- South Africa’s rand fell against the dollar for a second day as commodity prices slumped and worse- than-estimated U.S. jobs data spurred concern that the U.S. recession is deepening. South Africa’s shares extended declines after a report showed U.S. employers eliminated jobs in November at the fastest pace in 34 years and the unemployment rate jumped. “The U.S. jobs number was much worse than expected,” said Natheem Alexander, a bond and currency trader in Cape Town at Peregrine Quant, in a telephone interview. “The U.S. economy is under strain and commodity prices look set to drop further.” The rand declined as much as 1.3 percent to 10.4250 per dollar and traded at 10.3892 by 5:06 p.m. in Johannesburg, from 10.2925 yesterday. It dropped versus 7 of the 16 most-actively traded currencies monitored by Bloomberg, slipping as much as 0.5 percent against the euro to 13.2004. Copper for delivery in three months slid for a seventh day, losing as much as 8.5 percent to $2,991 a metric ton in London. Nickel, lead, zinc and aluminum prices also retreated. Alexander said the rand may be as strong as 9.80 next week amid speculation the central bank will lower interest rates on Dec. 11. Slowing inflation and lower oil prices may persuade the South African Reserve Bank to cut its main rate from 12 percent, the highest level in more than five years. Oil has slumped 71 percent since reaching a record on July 11. The yield on the 13.5 percent security due September 2015 dropped 4 basis points to 8.07 percent. The yield on the 13 percent note maturing in August 2010 slid 8 basis points to 7.93 percent. Yields move inversely to bond prices. To contact the reporters on this story: Janice Kew in Johannesburg at

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