Selling Rand for Ruble Is Hot Trade as Political Risks Part
- Politics battering South Africa’s rand while ruble steadies
- Citigroup, Societe Generale among firms recommending trade
Selling South Africa’s rand against Russia’s ruble is becoming one of the trendiest currency trades, with Citigroup Inc., Toronto Dominion Bank and Societe Generale SA among securities firms recommending short rand-ruble positions as political risk surged in one country and diminished in the other.
The rand has been buffeted by a dispute between President Jacob Zuma and Finance Minister Pravin Gordhan, falling 5.8 percent against the dollar in August to the weakest level since July 7. That came after the ruling African National Congress had its worst election result since the start of democracy in 1994, losing outright control of major cities including Johannesburg, Pretoria and Port Elizabeth and prompting Fitch Ratings Ltd. to warn the government could turn to more populist fiscal policies to win back support.