The national elections played havoc with the rand in June, giving crypto arbitrage investors some spectacular profits in the process.
The graph that appears further down shows what happened in the month of June as it became clear the ANC had lost its majority and would either have to form a government of national unity (GNU) or build coalitions with opposition parties.
The rand veered between R19 and R17.87 to the US dollar, hitting its weakest point in early June as fears grew that a lurch to the left was on the cards for the ANC.
It quickly corrected when it became clear a GNU encompassing the two leading parties the ANC and the more business-friendly Democratic Alliance (DA) would form the core of the new government.
The rand was all over the place for much of June, driven by rumours of aborted negotiations and then, finally, the announcement of an agreement with five parties representing 68% of the national votes forming the GNU: the ANC, DA, Inkatha Freedom Party (IFP), Good, and the Patriotic Alliance (PA). That news was money to investors, who pushed the JSE higher and propelled the rand below R18/$1 at one point.
