By Garth Theunissen May 20 (Bloomberg) -- South Africa’s rand declined to an almost two-week low against the dollar on growing concern Europe’s debt crisis will threaten the global recovery. The currency of Africa’s biggest economy weakened as much as 1.4 percent to 7.9538 per dollar, the lowest level since May 7. The rand traded 1.2 percent down at 7.9635 by 1:39 p.m. in Johannesburg, from a close of 7.8435 yesterday. The European Union has ordered high-deficit countries to reduce their budget shortfalls, fueling speculation growth in the economic bloc may decelerate. Europe accounts for about 29 percent of South Africa’s exports, according to data from the country’s Revenue Service. “This is a confidence sell-off that’s affecting all emerging markets,” said Werner Gey van Pittius, a portfolio manager at Investec Asset Management in London. “People are taking risk off the table.” The euro declined against the dollar today on concern European governments are divided on how to contain financial turmoil in the wake of the debt crisis. Government bonds fell in South Africa, with the benchmark 13.5 percent security due September 2015 falling 32 cents to 122.24 rand. The yield on the bond rose 6 basis points to 8.23 percent. To contact the reporter on this story: Garth Theunissen in Johannesburg gtheunissen@bloomberg.net

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