<ul data-eligibleForWebStory="false"><li>South Africa's rand and Brazil's real face increased volatility due to US tariffs, leading to soaring costs of hedging against currency declines.</li><li>President Trump's tariffs have impacted the rand and real, with both currencies experiencing significant drops this week.</li><li>Traders are demanding high premiums for options to sell the rand and real versus the dollar due to rising implied volatility, causing uncertainty in the market.</li><li>Investors are advised to diversify risks using a basket approach amid the tariff uncertainties, with South Africa and Brazil navigating different responses to the situation.</li></ul>

Currency hedging costs increase as rand faces external pressures

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