Rand's Ramaphosa Rally May Run Out of Steam

  • Derivatives markets signal currency’s vulnerability to selloff
  • Economic fundamentals not supportive, Credit Agricole says
A collection of 100 rand South African banknotes sit in an arranged photo in Johannesburg, South Africa, on Thursday, June 22, 2017. South Africa’s inflation rate rose for the first time this year in May after food-price growth quickened from the slowest pace since December 2015.Photographer: Waldo Swiegers/Bloomberg
Lock
This article is for subscribers only.

The South African rand’s surge lasted only as long as it took Cyril Ramaphosa to get himself to the top of the nation’s ruling party.

Now that he has, the currency’s world-beating rally is losing steam, and derivatives markets suggest it’s vulnerable to a renewed selloff.