BUUMBA CHIMBULU writes
THE financial market is anticipated that the Kwacha will remain in a tight band as market activity gradually slows down in the near term.
Barclays Bank Zambia daily market update indicates that the Zambian Kwacha lost minor gains against the dollar on Wednesday to close five ngwee lower on the day.
“Demand for dollars was mostly interbank driven as corporate demand was relatively moderate which saw the Kwacha close at K14.620/14.670 from an opening level of K14.570/14.620 per dollar,” said the bank.
And Cavmont Bank Zambia indicated that in the interim, the Kwacha was likely to remain vulnerable to movements to the downside should supply remain thin.
According to the bank, market activity was mostly flat throughout session as most players especially corporates remained cautious anticipating a further rebound in the local unit.
“Wednesday’s trading session saw the Kwacha open the day trading at K14.5700 / K14.6200 unchanged from the previous day.
“By afternoon however, the currency pair was seen being quoted at K14.6300 / K14.6800, a level it maintained until close of business,” Cavmont Bank said.
Elsewhere, South Africa’s rand was steady early on Wednesday, recovering some of the ground it lost in the previous session after the economy contracted in the third quarter.
The rand was 0.05 percent firmer at 14.6310 per dollar, having slipped to a session-low of 14.6980 on Tuesday as the 0.6 percent contraction to gross domestic product (GDP) snapped the currency’s four-session Winning streak.
Meanwhile, Benchmark London copper prices dipped on Thursday amid scepticism over the chances for a near-term preliminary trade deal between Washington and Beijing, despite U.S. President Donald Trump sounding positive again about the prospects.
Three-month copper on the London Metal Exchange was down 0.3 percent at US$5,869 a tonne, surrendering some of the gains from the previous session.