BUUMBA CHIMBULU writes
THE United States decision to keep tariffs on Chinese goods has negatively affected Copper prices on the international market which have depreciated for seven consecutive months.
Copper prices which had gone up hitting US$7,000.50 a tonne market late last year have depreciated by 0.5 percent.
Barclays Bank Zambia daily market report indicated that three-month copper prices on the London Metal Exchange was down 0.5 percent at US$6,270.50 a tonne.
“London copper prices dropped from an eight-month high on Wednesday, snapping a seven-session winning streak, after the United States said it would keep tariffs on Chinese goods that could potentially dampen any boost to global growth,” said the Bank.
Meanwhile, the Zambian Kwacha lost further ground in yesterday’s session against the United States dollar undercut by an uptick in demand notably from large corporates, the energy and agriculture sector.
At the 15:30 hours market close, commercial banks quoted the Kwacha at K14.350/14.400 to the dollar.
According to Barclays’ report, the Kwacha was 15 ngwee weaker than Monday’s close of K14.200/14.250.
“This morning, market has opened with little change from yesterdays close at K14.300/ K14.450 on the bid and offer respectively,” said the Bank.
The financial market was anticipating the local currency to continue trading on the defensive in the near term with factors of demand and supply being the main drivers of the currency’s next move.
This follows market activity which was gradually increasing and importer dollar appetite rising.