South Africa’s Rand Tumbles on Finance Minister Arrest Reports
- Leads currency declines even as presidency denies speculation
- Investors tiring of political ‘circus,’ Standard Bank says
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South Africa’s rand fell for a second day, heading for its weakest level against the dollar in two months, after reports that police are set to arrest Finance Minister Pravin Gordhan over alleged irregularities at the nation’s revenue service.
The currency declined as much as 2.1 percent to the weakest level on a closing basis since March 15 and was the worst performer among 31 major and developed-nation currencies monitored by Bloomberg. Two-week implied volatility rose to the highest since January and was the widest among emerging market currencies. Yields on benchmark government bonds due December 2026 climbed 14 basis points to 9.33 percent, the highest on a closing basis since March 29.