Rand Volatility Soars as Lawmakers Set to Decide on Impeachment
- Overnight volatility for currency at highest since April 2020
- Sparks for moves may come from Ramaphosa vote, US inflation
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Overnight implied volatility on the South African rand touched the highest level in more than two and a half years on Tuesday, ahead of a decision by lawmakers on whether to proceed with impeachment proceedings against President Cyril Ramaphosa.
Implied volatility, a gauge of expected swings in the currency, rose as high as 35%, the most on a closing basis since April 2020. Volatility has surged across the curve, with one-week levels touching November 2020 highs.