BUUMBA CHIMBULU writes
THE Zambian Kwacha ended the trading session strong on Friday mainly due to healthy dollar supply from corporates looking to fill their local currency tax obligations.
Short term support and resistance for the United States dollar is expected to be around K17.900 and K18.250 respectively.
Cavmont Bank Zambia indicated that the past weeks had seen the Kwacha maintain a tight trading range with minimal movements in either direction.
The Bank explained that the Kwacha made a comeback on Friday noon and was seen being quoted K18.130 / K18.180, a level it maintained until close of business.
“The Kwacha was largely range bound against the US dollar on Friday though it did come under some slight pressure during early trading which saw it touch an intra-day low of K18.180 / K18.230,” the Bank said.
Absa Bank Zambia indicated that it anticipated the local unit to trade steady in the near term.
The Kwacha, said the Bank, closed the day [Friday last week] at K18.050/18.100 from an opening level of K18.150/18.200 on the bid and offer respectively.
London copper scaled a 24-month high, on supply worries from top producer Chile due to a potential strike at a mine.
Three-month copper on the London Metal Exchange climbed as much as 3.3 percent to US$6,622.50 a tonne, a level unseen since July 3, 2018.