Rand at rock bottom

Mixed denomination rand currency banknotes are arranged for a photograph at a First National Bank (FNB) branch in Johannesburg, South Africa, on Friday, March 15, 2013. A recovery in mining and manufacturing is giving South Africa's rand and bonds a breather amid concern that growth is slowing while inflation accelerates. Photographer: Nadine Hutton/Bloomberg via Getty Images

Just when you thought things couldn’t get any worse for the rand . . . they probably won’t.

The currency slumped to a record low against the dollar in April, roiled by a slew of bad news: an ever-widening fiscal gap and soaring government debt; credit-rating downgrades leaving the country deep in junk territory; expulsion from a major bond index tracked by trillions of dollars of funds; and the implosion of the economy amid a strict coronavirus lockdown.

But there are signs the bad news is priced in, and the rand may be poised for a rebound as emerging markets recover from the devastation of the coronavirus pandemic. These charts show why.

The rand’s tentative recovery from a record low of 19,35 per dollar is encouraging options traders to prune bets on further losses. — Reuters.