Kwacha continues bearish run against dollar
THE Kwacha continued its bearish run against the United States (US) dollar as demand for the greenback from interbank players saw the local currency lose 40 Ngwee on the day.
Having opened trading at between KR5.290 and KR5.310 on the bid and offer respectively, the Kwacha proceeded to touch a day’s trough of between KR5.330 and KR 5.350, where it closed on trading.
According to the Zanaco Treasury Newsletter, The Kwacha’s depreciation has been on the back of strong dollar demand on the interbank, which has pegged the Kwacha back as scarcity in dollar supply has left the local unit without any significant support.
Zanaco money market analysts said the Kwacha is expected to be bearish against the dollar in the near term, trading range bound between KR5.300 and KR5.400 on the inter-bank.
Meanwhile, copper prices on the London Metal Exchange (LME) edged higher on Monday after better-than-expected US durable goods data lifted confidence about growth and demand in the world’s largest economy, but uneasiness about the growth of supply kept prices in check.
For a three-month period, copper on the world market traded at US$8,050 per tonne, up from Friday’s close of $8,030 per tonne.
Brent crude future prices edged up on trading, receiving a lift from US durable goods data and gasoline futures, which gained two per cent on Hess Corp’s plans to shut a refinery in the US Northeast.
Brent March crude rose 20 cents, or 0.18 per cent, to settle at $113.48 a barrel, having traded from $112.60 and $113.80. TIMES OF ZAMBIA