Currency Volatility Jumps to 3-Month High as Turmoil Persists
- Decline in crude-oil price spurs losses for rand and real
- China turmoil has investors assessing risk-on, risk-off
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Currency volatility rose to a three-month high as China’s market meltdown continued to ripple across the globe, hurting currencies of nations that rely heavily on demand from the world’s second-biggest economy.
Natural-resource-linked currencies, such as South Africa’s rand and Brazil’s real, were among the biggest losers after oil fell while equities in Europe and the U.S. resumed their slumps that began on the first trading day of the year. The yen, a traditional haven currency, pared losses.