The rand strengthened for a second day as a drop in U.S. jobless claims and rise in consumer confidence spurred optimism the world’s biggest economy will sustain demand for the commodities South Africa exports. South Africa’s currency appreciated as much as 0.6 percent versus the dollar and traded 0.2 percent stronger at 8.1549 as of 8:29 a.m. in Johannesburg, taking gains for the week to 2.9 percent. The rand has fallen the most this year among its emerging-market peers, down 19%. Reports today are forecast to show U.S. personal spending, durable-goods orders and new home sales rose in November, after data showed a drop in jobless claims yesterday. The U.S. is the second largest consumer of copper, used in housebuilding, after China. Copper advanced for a fourth day in the best run of gains since Oct. 28. Commodities make up more than half of South Africa’s total exports, according to Rand Merchant Bank. “Data generally has been positive, though we are coming off an unbelievably low base,� Brigid Taylor, head of institutional sales at Johannesburg-based Nedbank Capital, said by phone. “I am still of the opinion that the market has been so badly hurt this year people are looking for positive news to drive the market higher.� South Africa’s 13.5 percent bonds due 2015 advanced for a seventh day, their longest winning streak in four months, driving the yield down 1 basis point or 0.01 percentage point to a two-week low of 6.56 percent. To contact the reporters 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

Source