Traders are cutting longer-dated bearish positioning on the South African rand, according to options market data cited by Bloomberg and Moneyweb. The cost of hedging against a decline in the rand over the next 12 months has fallen to its lowest level this year. One measure tracked by Moneyweb—one-year risk reversals, which reflect the difference in the cost of options to sell versus buy the rand—trades around 1.8 percentage points on Tuesday, the lowest since December. Bloomberg attributes the cooling in hedging demand to expectations that recent sources of volatility will fade. It points to market disruptions linked to the Middle East conflict and to a surprise decision by South Africa’s central bank to hold interest rates. With investors implying less risk of large rand moves in the coming year, the implied premium to bet against the currency declines. Both outlets focus on changes in options pricing rather than spot moves, indicating a shift in how investors position for future exchange-rate swings rather than reporting changes in the rand’s current level.