South Africa Traders Are Most Bearish on Rand in Three Years

Bearish options bets on the rand are at the highest in almost three years as traders start to question whether the South African currency’s headlong rally has further to run.

So-called risk reversals — the difference in cost between options to buy and sell the rand — are signaling concern about the currency after a historic 15% rally over the past year. While many investors remain bullish on the rand, the moves have gone so far that some are speculating the market is due for a pause, especially as traders brace for potential budget surprises this week.