# Volatility jump betrays rand traders’ nerves before Fed decision - Moneyweb

> Overnight implied volatility on the rand jumped to 25%, the highest since August 2018, before easing, ahead of the Federal Reserve decision. The market expected a quarter-point cut, and traders feared a sharp rand move if the Fed disappointed.

- Date: 2019-09-18 · published 2019-09-18T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/57364-volatility-jump-betrays-rand-traders-nerves-before-fed-decision-moneyweb
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Heightened currency volatility ahead of a Fed decision raises hedging costs and import price uncertainty for South African feed buyers, while rate expectations drive dollar strength.

## Read by commodity

- DXY: neutral
- USDZAR: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-04-27 | [Yen in tight range before BOJ decision, markets await Fed and ECB \| 1330 & 101.5 WHBL](https://feedsoft.ai/events/53859-yen-in-tight-range-before-boj-decision-markets-await-fed-and-ecb-1330-and-101-5.md) | -0.8% | -1.5% |
| DXY | 2017-12-13 | [What bond and currency traders are looking for from Yellen’s Fed decision - MarketWatch](https://feedsoft.ai/events/67656-what-bond-and-currency-traders-are-looking-for-from-yellen-s-fed-decision.md) | -0.4% | -1.8% |
| DXY | 2024-04-29 | [Market trades with caution ahead of US Fed rate decision this week](https://feedsoft.ai/events/31036-market-trades-with-caution-ahead-of-us-fed-rate-decision-this-week.md) | -0.7% | -1.1% |
| DXY | 2026-07-29 | [South African rand tracks subdued market peers ahead of Fed interest rate decision \| MarketScreener Australia](https://feedsoft.ai/events/18639-south-african-rand-tracks-subdued-market-peers-ahead-of-fed-interest-rate.md) | -0.9% | -2.0% |
| DXY | 2026-01-28 | [Fed holds rates as window for another Powell cut begins to close - Moneyweb](https://feedsoft.ai/events/20965-fed-holds-rates-as-window-for-another-powell-cut-begins-to-close-moneyweb.md) | +0.4% | +0.3% |

## Sources

- moneyweb.co.za: https://www.moneyweb.co.za/news-fast-news/volatility-jump-betrays-rand-traders-nerves-before-fed-decision/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.