By Garth Theunissen June 14 (Bloomberg) -- South Africa’s rand rose to an almost two-week high against the dollar as stocks worldwide gained on signs the global economy is enduring Europe’s debt crisis, boosting appetite for higher-yielding assets. The currency appreciated as much as 0.9 percent to 7.6155 per dollar, the strongest level since June 3, before trading 0.7 percent up at 7.6312 by 12:31 p.m. in Johannesburg. Against the euro, the rand lost 0.4 percent to 9.3447. Stocks and emerging-market currencies strengthened after a report showed European industrial production increased more than economists forecast in April, adding to signs the region’s economy may weather the sovereign debt crisis. U.S. consumer sentiment rose to its highest since January 2008, a report late on June 11 showed. “As long as the global economic recovery holds up then the rand will remain generally quite firm,” said John Cairns, head of foreign-exchange research at Rand Merchant Bank in Johannesburg. Industrial output in the 16-member euro zone rose 0.8 percent from March, the European Union’s statistics office in Luxembourg said today. Economists had projected a gain of 0.5 percent, the median of 33 estimates in a Bloomberg survey showed. South Africa’s currency held gains even after consumer confidence in Africa’s biggest economy fell in the second quarter, according to a report. The FNB/BER consumer confidence index retreated to 14 from 15 in the first three months of the year, First National Bank and the Bureau for Economic Research said today. Government bonds rose, with the benchmark 13.5 percent security due September 2015 gaining 6 cents to 123.21 rand. The yield on the bond fell 2 basis points to 7.98 percent. Investors trimmed bets that the South African Reserve Bank’s monetary policy committee will reduce the benchmark lending rate when it next meets on July 22, forward-rate agreements showed. The cost of three-month contracts for cash in three months increased for the first day in six, adding 1 basis point to 6.41 percent. The rate 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

Source