The Zambian Kwacha remained under pressure against the US dollar on Thursday, extending losses for a second consecutive session as demand for hard currency continued to outweigh supply on the local market. Bloomberg data showed that the Kwacha depreciated by 0.16 percent, closing just below the 100-day Simple Moving Average (SMA) of 23.1863. Market analysts attributed the currency’s slide to persistent demand–supply imbalances in the foreign exchange market.
“With the festive season approaching, demand for hard currency—particularly to support increased import activity—is expected to keep the local unit slightly pressured in the near term,” it stated. Meanwhile, Access Bank Group’s market commentary indicates that the US dollar weakened against major G-10 currencies, with the DXY Index edging lower as investors awaited key economic releases from the United States. These include personal income and spending figures, the core Personal Consumption Expenditure (PCE) index, the broader PCE price index, and preliminary Michigan consumer sentiment data.
The reports are anticipated to give further clarity on the Federal Reserve’s policy outlook following this week’s mixed US employment data. Analysts note a growing bearish sentiment around the dollar, influenced by year-end hedging and repatriation flows, speculation over the possible appointment of a more dovish Fed chair, and rising concerns about risks in the US labour market. 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.
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