Expensive Lessons for Rand Traders as Gordhan-Zuma Battle Rages
- Rand is a daily ‘nightmare,’ Credit Agricole strategist says
- ‘Personality politics’ make forecasts volatile, Nomura says
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The wheels are coming off the rally in the South African rand.
The currency has swung to being the emerging world’s worst performer this month, from best in the third quarter, after a move to prosecute Finance Minister Pravin Gordhan sparked a sell-off of South African assets. Volatility has jumped to the highest among currencies tracked by Bloomberg, catching out investors and driving others to steer clear of South African markets until the political storm has passed.