We investigate the effects of impurity spin dynamics on quantum cohere
nce in mesoscopic metallic rings. Spin relaxation induces temporal cur
rent fluctuations which are closely related to persistent currents in
such systems. The persistent current is suppressed in the presence of
magnetic impurities. We discuss spin-polarisation effects, spin-glass
ordering, and the Kondo effect which are shown to restore the current
even in the presence of magnetic scattering.