A Bumpy Ride on the Rand this morning

The currency traded at 13.0989 per dollar as of 9:50 a.m. in Tokyo after earlier touching 12.9055, the strongest level since Sept. 12, according to data compiled by Bloomberg. Against the euro, it approached a five-month high and was at 15.3891.

Traders are betting Cyril Ramaphosa will win the election after gaining more branch nominations than his opponent, Nkosazana Dlamini-Zuma. While five other officials declared their candidature for party president, none of them received nomination from the delegates at the party’s national elective conference in Johannesburg on Sunday.

“The rand is stronger on the likelihood of Cyril Ramaphosa being elected ANC head,” Stephen Innes, Singapore-based head of trading for Asia Pacific at Oanda Corp., said in a note. “And indeed Tokyo ‘carry traders’ will be smiling this morning. ”

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes