Rand traders are starting to look to next year’s South African election, betting that it will bring with it whipsaws in the currency. News24 reports that the currency’s one-year implied volatility — the options market’s estimates of price swings over the life of the contract — has shot up from three-year lows reached last month. It has risen about 70 basis points to 15.8% since July 13, one of the five highest among emerging markets monitored by Bloomberg — in league with the ruble, lira, and Argentine peso, which are being buffeted by political ructions.
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