The rand’s rapid turnaround from April’s record low has already burnt some traders’ fingers.

There may be more victims, judging by the discrepancy between forecasts for the currency and its actual level. TD Securities’ long-dollar-rand trade — opened on May 21 at R17.92 per dollar — was stopped out just eight days later when the currency strengthened below R17.45, handing the position a 2.6% loss.

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