Kwacha rebounds against the dollar
Written by Millennium on May 24, 2019
BUSINESS REPORTER writes
THE Kwacha posted a massive rebound against the U.S dollar during Tuesday’s afternoon’s trading session following an increase in supply on the interbank.
According to Cavmont Bank Zambia daily market report, the local unit began the day trading at K13.870 / K13.920 however by noon; the Kwacha was seen being quoted at K13.750 / K13.800 by some interbank players.
Despite the positive movement, most corporates remained cautious and were anticipating further gains.
The bank said current trends indicated that the local unit was likely to make further positive movements should supply continue to outweigh demand while market activity is likely to pick up on the buy side should the Kwacha continue its movement on the up-side.
On money markets, Cavmont reported that commercial banks’ aggregate current account decreased by K46.42 million to K573.11 million while the overnight borrowing and lending rate maintained 9.94%.
Total funds traded on Interbank was K325 million.
On international commodity markets, copper price continued on its downward slide after it posted a drop of US$6 to push its current selling price to $6,029 a tonne.
The same pattern was also reported for g0ld whose price fell by US$7 and metal was now trading at $1,270 an ounce.
Brent crude oil was equally not spared the same doom as its price marginally fell by $0.47 and the commodity was presently selling at $71.95 a barrel.
