Nov. 16 (Bloomberg) -- The rand depreciated to the lowest in two weeks against the dollar as commodities prices fell, European Central Bank and Irish officials met to solve a debt crisis. The currency of Africa’s biggest economy weakened for the sixth time in seven days, retreating as much as 1.3 percent to 7.0347 and trading 0.9 percent weaker at 7.0075 by 3:26 p.m. in Johannesburg from a previous close of 6.9474. Copper, lead, nickel, tin and zinc prices retreated in London on concern that China, the world’s biggest consumer of the metal, may take further steps to cool economic growth, damping demand for commodities. Gold, which with platinum accounts for more about a fifth of the South Africa’s exports, declined before a report that economists said will show U.S. industrial demand expanded, supporting the dollar and curbing bullion demand. Irish Prime Minister Brian Cowen said he would discuss aid for banks at a meeting of European finance ministers today to prevent a sovereign debt crisis from destabilizing the euro. The dollar gained versus 13 of its 16 major counterparts on signs of recovery in the U.S. “The latest data shows that speculators are rapidly unwinding short dollar positions and yet still have a very long way to go as U.S. data improves and problems in Portugal, Ireland, Italy, Greece and Spain mount,” John Cairns and Nema Ramkhelawan, analysts at Johannesburg-based Rand Merchant Bank, wrote in an e-mailed note today. Bonds, FRAs China is under “pressure” from capital inflows, central- bank Governor Zhou Xiaochuan said as a state newspaper reported that price controls may be imposed to cool the fastest inflation in two years. The country’s benchmark money-market rate yesterday rose to a one-week high. Bonds snapped two days of declines, with the benchmark 13.5 percent security due September 2015 adding 11 cents to 126.11 rand. The yield declined 3 basis points, or 0.03 percentage point, to 7.02 percent. Forward-rate agreements, or FRAs, showed money-market investors raised bets the South African Reserve Bank will lower its 6 percent main interest rate when it announces its next decision this week on Nov. 18. The cost of three-month contracts for cash due in one month fell 3 basis points to 5.695 percent. The so-called 1x4 FRA contract fell to 5.69 percent on Nov. 4, the lowest since the central bank first introduced the repurchase rate in 1999. --With assistance from Garth Theunissen in Johannesburg. Editors: Linda Shen, Stephen Kirkland. To contact the reporter on the story: Ana Monteiro in Johannesburg at amonteiro4@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net.

Source