Rand Biggest Loser in Torrid Month for Carry Traders: Chart

The carry trade turned sour for investors in emerging markets and commodity producers this month as Federal Reserve officials rekindled expectations for interest-rate increases and a rally in raw-material prices stalled. South Africa’s rand fared the worst, almost wiping out its 11.2 percent carry return of the previous four months, as political tensions exacerbated the currency’s selloff. Now’s not the time to be long rand, said Credit Agricole CIB’s Guillaume Tresca, who predicts further declines as rating companies downgrade the nation to junk.

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