The rand firmed to its best level in almost a week on Tuesday  and was on track for its second day of gains amid hope that Covid-19 death rates were slowing in some of the most affected parts of the world, including Italy and Spain.

“The rand is off its recent highs but by no means less vulnerable to a sudden gap as implied volatility remains elevated in the one-week to one-month space,” Rand Merchant Bank analyst Nema Ramkhelawan-Bhana said. The rand's one-week implied volatility was a 33.23%, the highest among emerging-market currencies tracked by Bloomberg, followed by the Russian rouble 28.76%.

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