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The Rand Becomes an Unlikely Haven

South Africa Bonds Jump as Treasury Surprises With Auction Cut

Photographer: Nadine Hutton/Bloomberg

South Africa’s rand may have been the world’s most volatile major currency over the last year, but traders think that’s going to change as price swings surge in Mexico, Russia and Turkey.

The rand’s implied, or expected, volatility over the following three months is below that of the peso, ruble and lira for the first time since at least 2005, according to data compiled by Bloomberg. It’s a turnaround from just two weeks ago, when investors priced the rand’s future volatility higher than any of its peers.