By Franz Wild Feb. 5 (Bloomberg) -- The rand declined for a third day, extending yesterday’s worst drop in more than two months, after a retreat in the prices of gold and platinum, South Africa’s biggest exports. The currency of Africa’s biggest economy lost as much as 0.4 percent to 7.7226 to the dollar, from a close yesterday of 7.6895, its lowest level since Dec. 23. It was 0.1 percent weaker at 7.7000 as of 11:37 a.m. in Johannesburg. The rand is poised to fall 1 percent this week. “Commodities are bringing the rand down,” Duncan Howes, a currency trader at Absa Group Ltd. said by phone from Johannesburg. Appetite for higher-yielding assets sank after concern that European nations will struggle to finance budget deficits eroded demand for emerging-market resources. “The rand is selling off in line with the other risky assets. Expect some volatility,” said Howes. Platinum slipped 2.7 percent to $1,468.60 an ounce, extending yesterday’s 4.2 percent drop. The spot gold price fell as much as 1.4 percent to $1,049.57 an ounce after declining 4.1 percent yesterday. The two precious metals account for about 22 percent of the country’s exports, according to its Chamber of Mines. Copper, lead, aluminum, zinc and nickel also fell. Government bonds fell for a third day, heading for their first weekly decline in three. The yield on the benchmark 13.5 percent security due September 2015 rose two basis points to 8.41 percent. The bond’s price fell 12 cents to 122.38 rand . --Editors: Ana Monteiro, Gavin Serkin. To contact the reporter on this story: Franz Wild in Johannesburg at +27-11-286-1929 or fwild@bloomberg.net To contact the editor responsible for this story: Gavin Serkin in London on at +44-20-7673-2467 or gserkin@bloomberg.net

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