SUN BUSINESS REPORTER writes
THE Zambian Kwacha lost ground on Friday, hurt by dollar demand from corporates amid thin inflows from exporters.
At the market close around 1530 hours, commercial banks quoted the Kwacha at K13.140/13.190 to the dollar from an open of K13.100/13.150, losing 4 ngwee on the day.
According to Barclays Bank Zambia daily market update, the local unit was likely to trade steady in the short term with a bias to post minor gains as corporates continue to prepare to settle their Vat obligations.
On Money Market, the bank reported that liquidity levels continued to improve on Friday closing at K1,878.06 billion from K1,522.61 billion seen the previous day with the volumes of funds traded on the interbank decreasing slightly to K215.00 million from K285.00 million.
The overnight interbank lending rate inched up to 11.27 percent from 11.25percent.
Barclays further reported the local unit was quiet in Friday’s session with yields remaining relatively unchanged.
On the international markets, the bank reported that copper price failed to respond positively on Friday to China boosting bank lending because the trade dispute between the biggest metals consumer and the United States still weighed on the market.
Copper failed to break through its 50-day moving average at $5,841 this week, prompting speculators to hold back.
Gold prices remained under pressure on Friday, as robust U.S. data encouraged a return to riskier assets and hit demand for safe-haven bullion, also sending platinum down 3 percent.
Spot gold was down 0.6percent to $1,509.41 per ounce, after shedding 1percent to a low of $1,504.30, its lowest since August 23.
It was also reported that oil prices rose on Monday after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend.
Global benchmark Brent crude oil was up 7 cents at $61.61 a barrel by 0106 GMT.