Kwacha to rebound against the dollar
Written by Millennium on April 17, 2019
THE Kwacha is expected to make a rebound against the dollar once the current demand levels subside, said Cavmont Bank Zambia
The bank in its daily market report however said the local currency continued with its movement against the U.S dollar on Friday, touching an intra-day low of K12.450 / K12.500 on the interbank bid and offer respectively from its opening levels of K12.300 / K12.350.
It reported that market activity was mostly flat on the interbank as most players were seen protecting their offer side while some corporates on the buy side were seen trading the currency pair actively taking a view that they would be a further movement to the downside.
On money markets, Cavmont reported that commercial banks’ aggregate current account declined by K934. 28 million to K833.61 while the overnight borrowing and the lending rate was unchanged at 9.9 percent.
Total funds traded on the interbank was K185 million.
Meanwhile, Thursday’s T-bill auction was under-subscribed by 63.3percent as total bids amounted to K348.60 million against an auction size of K950 million which was being offered.
Yields rose across all tenors by average of 0.56percent, with the 364days being the most bid for tenor and this saw the yield rise to 24.06percent from 24opercent.
On international commodity market, copper prices continued on its upward trajectory after it posted a rise of US$60.50 to trade at US$ 6,502.50 a tonne.
The same was true for Brent crude oil whose price marginally rose byUS$00.06 and the commodity was currently selling at US$ $71.36 a barrel.
But the price of gold suffered a slight knock of US$ 8.87 tp push its selling price to US$ 1,294.13 an ounce.
