BUUMBA CHIMBULU writes
THE Zambian Kwacha slipped back towards a two-month low against the dollar on Thursday, under pressure from importers seeking dollars to meet their monthly commitments.
This is according to the daily market update prepared by the Barclays Bank Zambia.
The bank said opening the day at K12.950/13.000 per dollar, the Kwacha marginally lost ground throughout the trading session on continued dollar demand which saw it close at K13.030/13.080 on the bid and offer respectively.
“Near term the local unit is likely to be on the defensive with factors of demand and supply influencing the currency’s next move,” the bank said.
On Wednesday, the Zambian Kwacha weakened against the dollar on mainly due to increased dollar demand from importers and thin inflows.
The bank indicated that Kwacha closed at K12.950/13.000, 10 ngwee lower than its opening level of K12.850/12.900 to the dollar.
“The local unit is likely to reverse some of its loses in the short term as corporates begin to convert dollars to settle their Tax obligations due on the 10th of every month,” said the bank.