# USD/ZAR: Nominal yield spreads to remain attractive, supporting rand – CIBC — Octa

> CIBC economists expect the USD/ZAR to edge lower because nominal yield spreads remain attractive for the rand. The rand retreated in June as foreign investors unwound holdings, and a Covid third wave forced a return to Stage 4 lockdown with only about 3% of the population vaccinated.

- Date: 2021-07-13 · published 2021-07-13T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/46361-usd-zar-nominal-yield-spreads-to-remain-attractive-supporting-rand-cibc-octa
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Higher commodity prices improving South Africa's terms of trade support the rand, which lowers the local cost of imported feed ingredients if the forecast holds.

## Read by commodity

- USDZAR: neutral

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/912616/

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