Rand Gains as South Africa’s Political Risk Premium Eases

The rand led emerging-market currency gains against the faltering dollar after weekend reports raised hopes that a rift in South Africa’s governing coalition will be ironed out.

The currency rose 1.3% to 18.9267 per dollar by 2:38 p.m. in Johannesburg, rising for a second day and set for its strongest close in almost two weeks. Volatility remains high, suggesting traders are still hedging for wild swings amid uncertainty about President Donald Trump’s tariffs.

The two largest political parties in South Africa’s governing coalition said they held constructive talks on Saturday to resolve an ongoing dispute over the nation’s budget. Investors ...