The rand appreciated the most in a week against the dollar, up for a fourth day, rebounding after a 3 percent decline this month and 21 percent rout this year. South Africa’s currency rose as much as 0.4 percent before paring its gain to 0.2 percent at 8.3769 per dollar as of 8:30 a.m. in Johannesburg. While the rand is proving “more resilient� than it might have been in the past, it will “struggle to rally back to levels more in line with South African fundamentals whilst a major credit crunch is unfolding abroad,� George Glynos, an economist at Johannesburg-based ETM Analytics, wrote in e-mailed comments today. The rand slid 3.7 percent last week, breaking through 8.4550, which represents a 76.4 percent retracement level from a Nov. 30 low, according to Johannesburg-based ETM Analytics, citing the daily Fibonacci chart. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low. A break above resistance, or below support, indicates it may move to the next level. Support refers to an area where buy orders may cluster. Resistance is where there may be orders to sell. European Central Bank President Mario Draghi said yesterday substantial risks to the economy remain and the law forbids him from increasing government bond purchases to fight the crisis. Euro Weak The euro traded 0.5 percent from an 11-month low before Spain sells securities and the release of a German report today forecast to show deteriorating business confidence in Europe’s largest economy. Euro-region governments have to repay more than 1.1 trillion euros ($1.4 trillion) of long- and short-term debt in 2012, according to data compiled by Bloomberg. South Africa’s 13.5 percent bonds due 2015 retreated marginally, driving the yield up two basis points, or 0.02 percentage point, to 6.894 percent. To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net To contact the editors responsible for this story: Edward Evans at eevans3@bloomberg.net

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