The Zambian kwacha continued its upward trajectory against the US dollar in Tuesday’s trading session, buoyed by consistent foreign exchange inflows that effectively balanced market demand. Recent gains in the local currency have been largely attributed to central bank interventions and sustained foreign currency sales from offshore corporates, which have helped maintain market liquidity and ease demand pressures. According to a market update from Absa Bank Zambia, interbank trading opened at K27.450/27.500 per dollar.
However, persistent dollar selling throughout the session pushed the pair lower, with the kwacha closing at K27.000/27.050. “In the short term, the currency is expected to consolidate within a stable range, with direction largely influenced by ongoing supply and demand dynamics,” Absa stated. Access Bank Group also reported that the kwacha extended its rally for a fourth straight session, breaking below the 200-day simple moving average (SMA) of K27.4174 and closing just above K27.200 per dollar—a nearly 2.0 percent gain.
“The kwacha’s strength over the past few days has been driven by central bank support and continued inflows from offshore corporates, which have sustained market liquidity and alleviated demand-side pressure,” Access Bank said. Meanwhile, on the commodities front, metals prices in London held steady on Wednesday as investors awaited high-level trade talks between US and Chinese officials in Switzerland this weekend. The discussions aim to ease ongoing tensions between the world’s two largest economies.
Read Full Article on Zambia Monitor
[paywall]
At the close of trading, benchmark copper on the London Metal Exchange dipped slightly by 0.1 percent to US$9,533.50 per metric ton, with traders cautious ahead of the anticipated diplomatic engagement. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
[/paywall]
