The rand weakened for the first time in five days as metal prices retreated on concern that Europe’s sovereign debt crisis may slow global economic growth, damping demand for raw materials. South Africa’s currency declined 0.4 percent to 8.0635 as of 8:34 a.m. in Johannesburg. Against the euro, it fell 0.3 percent to 10.5124, a second day of losses. The outlook for China’s copper demand, which typically peaks at the end of February through May, is “uncertain� as Europe’s debt crisis threatens to curb exports, Premier Wen Jiabao said during a two-day trip to Hunan province, according to a statement on the government’s website yesterday. Three-month copper on the London Metal Exchange fell as much as 1.8 percent to $7,650 a metric ton, its first decline in three days. Commodities make up 50 percent to 60 percent of South Africa’s total exports, according to Rand Merchant Bank. “We are not out of the woods yet with the euro-zone crisis,� Ion de Vleeschauwer, chief dealer at Johannesburg- based Bidvest Bank Ltd., which runs South Africa’s largest chain of moneychangers, said by phone. A Franco-German summit in Berlin on Jan. 9 “will probably give us clearer direction of where to go,� he said. The rand will battle to break through the 8-per-dollar level in the “short term� because of thin post-holiday trade and importer demand at these levels, de Vleeschauwer said. “The market will keep a close eye on any developments in euro land, but I don’t think there will be much this week ahead of the big meeting next week so we will probably be stuck in a tight range,� he said. South Africa’s 6.75 percent bonds due 2021 slipped for the first time in five days, driving the yield up three basis points, or 0.03 percentage point, to 7.97 percent. To contact the reporter on this story: Stephen Gunnion in Johannesburg at sgunnion@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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