By Garth Theunissen June 8 (Bloomberg) -- South Africa’s rand strengthened against the euro for a fifth day and reversed declines against the dollar after gold rose to a record as investors sought safe- haven assets amid Europe’s widening debt crisis. The currency of Africa’s biggest economy appreciated as much as 0.6 percent to 9.2653 per euro and traded 0.3 percent stronger at 9.2997 as of 1:58 p.m. in Johannesburg, from a close of 9.3245 yesterday. The rand traded 0.1 percent stronger against the dollar at 7.7963, reversing an earlier 0.4 percent decline. “The gold price has spiked on safe-haven buying,” said Marlene Miller, a dealer at Peregrine Quant, a hedge fund in Cape Town. “There also seems to be a bit of repatriating of foreign currency.” Bullion rallied to a record in London and New York and hit highs in euros, sterling and Swiss francs amid speculation that debt-cutting measures by European nations will slow their economies. Gold is up 14 percent this year, headed for its 10th consecutive annual gain, the longest winning streak since at least 1920. Platinum and gold together account for about fifth of South Africa’s export earnings, according to the Johannesburg-based chamber of mines. Government bonds advanced in South Africa, with the price of the benchmark 13.5 percent security due September 2015 climbing 5 cents to 122.83 rand. The yield on the bond decreased 1 basis point to 8.07 percent. Business Confidence South Africa’s business confidence index fell to 36 in the second quarter, from 43 in the first three months of the year, Rand Merchant Bank, which compiles the measure with the University of Stellenbosch’s Bureau for Economic Research, said in an e-mail. Investors maintained bets South Africa’s central bank will cut its 6.5 percent benchmark rate when it next meets on July 22, with forward-rate agreements showing the cost of three-month contracts for cash in three months were steady at 6.445 percent. The rate on the contract reached a 6 1/2-year low of 6.36 percent on April 21. To contact the reporter on this story: Garth Theunissen in Johannesburg gtheunissen@bloomberg.net

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