Forex traders prepare for rand swings ahead of next year’s elections

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.