Traders Are Bracing for ‘Explosive’ Moves in the Rand
- Currency’s implied volatility at highest since 2008 crisis
- Market may be too optimistic about Ramaphosa victory: RMB
Goldman Sachs' Coleman on Race to Lead S. Africa's ANC
This article is for subscribers only.
Rand traders haven’t been this nervous since the global financial crisis.
Just days before South Africa’s ruling African National Congress elects a leader to replace President Jacob Zuma as party head, the rand’s implied volatility versus the dollar has shot up to levels last seen in 2008. The measure, based on options to buy or sell the currency, suggests traders are preparing for big price swings, depending on the outcome of the leadership battle.