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Options Traders Cut Long-Term Bearish Bets on South African Rand

Bloomberg Markets Tuesday 04 August 2026, 11:55 UTC By Mpho Hlakudi 1 min read
Key Points

Currencies Options Traders Cut Long-Term Bearish Bets on South African Rand The cost of hedging against rand declines over the next 12 months has fallen to the lowest level this year as investors bet gyrations spurred by the Middle East conflict and a surprise interest-rate hold by the central bank will soon blow over. One-year risk reversals — the difference in cost between options to sell or buy the rand — traded at 1.8 percentage points on Tuesday, the lowest level since December.

Currencies Options Traders Cut Long-Term Bearish Bets on South African Rand The cost of hedging against rand declines over the next 12 months has fallen to the lowest level this year as investors bet gyrations spurred by the Middle East conflict and a surprise interest-rate hold by the central bank will soon blow over. One-year risk reversals — the difference in cost between options to sell or buy the rand — traded at 1.8 percentage points on Tuesday, the lowest level since December.
South African Rand (ORG) Middle East (LOCATION) the central bank (ORG)
Originally published by Bloomberg Markets Read original →

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