The rand headed for a two-week low against the dollar and slipped for a third day against the euro as concern that the global economy is slowing damped demand for the currencies of commodity exporters including South Africa. The rand depreciated as much as 1.1 percent to 6.8153 per dollar and traded at 6.7984 as of 10:37 a.m. in Johannesburg. It slipped 0.5 percent to 9.6922 per euro. Emerging-market stocks fell, driving the benchmark index to its biggest three-day loss in 13 months, after U.S. reports this week on manufacturing, spending and the services industries fueled concern the world’s biggest economy is faltering. Spanish and Italian bonds are near record highs on concern slowing growth will worsen the euro-region’s debt crisis. South Africa’s stock index dropped to a more than four-month low. “The key point is that the concerns over the global economy and the ongoing problems in Portugal, Ireland, Italy, Greece and Spain have not disappeared,” John Cairns and Nema Ramkhelawan-Bhana, currency strategists at Rand Merchant Bank in Johannesburg, wrote in a research note. “The risk of a rand blowout remains in play.” The one-month implied volatility of the rand versus the euro rose to 15.25 percent today, from 15.20 percent yesterday, indicating investors see wider price swings in coming weeks. The gauge increased in each of the past five trading days. Yen, Franc South Africa’s currency strengthened the most since March 19 against the yen and advanced for a second day against the Swiss franc. Japan sold the yen and expanded monetary stimulus a day after Switzerland cut interest rates and weakened its currency, underscoring concern global growth is stalling. “It’s all about central banks and inflationary intervention this morning,” Tradition Analytics researchers led by Johannesburg-based Quinten Bertenshaw said in a research note. Intervention by the Japanese and Swiss central banks is “also by definition supportive of the dollar and euro, which have been in free fall against these two currencies in recent weeks.” The rand climbed as much as 3.3 percent to 11.7805 yen. It strengthened 0.7 percent to 8.7264 francs. Bonds gained for a fifth day, dragging yield to the lowest in eight months. The 13.5 percent notes due 2015 added 4 cents to 122.31 rand, reducing the yield two basis points, or 0.02 percentage point, to 7.114 percent. To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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