# USD/ZAR: South African rand gains steam amid S&P rate downgrade

> S&P Global cut South Africa's long-term foreign-currency rating to BB- from BB, citing stimulus-driven debt increases and an expected 4.5% economic contraction. The USD/ZAR pair nonetheless declined slightly, as the downgrade was largely priced in and reopening hopes grew. The pair had earlier touched a decade high near 19.34.

- Date: 2020-04-30 · published 2020-04-30T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/53916-usd-zar-south-african-rand-gains-steam-amid-s-and-p-rate-downgrade
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

The rand's relative stability despite the downgrade trims import costs for dollar-priced feed ingredients, though weaker domestic demand may dampen feed consumption.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- investingcube.com: https://www.investingcube.com/forex/usd-zar-south-african-rand-gains-steam-amid-sp-rate-downgrade/

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