The Zambian kwacha weakened further at the start of the week, extending losses for a second consecutive session against the United States dollar. Bloomberg data show the local unit depreciated by 0.82 percent, closing slightly above the K28.000 per dollar mark. The continued pressure was attributed to elevated demand for foreign currency amid tight liquidity conditions and subdued FX inflows.
In its daily market watch, Access Bank Group however noted that liquidity is expected to improve as the week progresses due to anticipated corporate and commercial conversions ahead of end-of-month local payment obligations. Meanwhile, in the base metals market, Access Bank reported that aluminum and copper prices slipped as traders awaited delayed US economic data and reassessed the likelihood of a December interest rate cut by the Federal Reserve. The renewed uncertainty dampened risk appetite across industrial metals.
Aluminum, which earlier in November hit a three-year high on the back of strong Chinese demand and tightening global supply, has seen sentiment soften amid growing concerns over the US economic outlook and cautious messaging from Fed officials. The broader decline in London Metal Exchange (LME) prices also masks regional variations, including Rio Tinto’s decision to impose surcharges on aluminum shipped to the US as domestic inventories shrink following steep import tariffs. 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.
Read Full Article on Zambia Monitor
