KWACHA CONTINUES TO GAIN AGAINST DOLLAR
Written by Millennium on May 25, 2019
BUSINESS REPORTER writes
THE Kwacha continued with its positive performance against the U.S dollar during Wednesday trading.
According to Cavmont Bank Zambia daily market report, the local currency appreciated to an intra-day high of K13.350 / K13.400 on the interbank bid and offer respectively.
The local unit’s support was mainly as a result of increased supply on the interbank as well as from some exporters.
Most buyers have however remained cautious as they were still looking for further gains.
With the 200-day moving average now around $1/12.7793, the support level for the U.S dollar is likely to be around $1/K13.100.
On money market news, Cavmont reported that commercial banks’ aggregate current account increased by K182.16 million to K755.27 million while the overnight borrowing and lending rate increased by 0.02percent to 9.96 percent
Total funds traded on Interbank was K502 million.
Meanwhile, Bank of Zambia has adjusted the monetary policy rate by 50 basis points from 9.75percent to 10.25percent.
The bank further reported that the price of copper on the London Metal Exchange (LME) continued to go down and by yesterday it registered a drop of US$6 and the metal was presently trading at $5,927 a tonne.
The price of gold posted some sign of recovery when it went up by US$4.00 to push its trading price to $1,274 an ounce.
The bank further reported that the price Brent crude oil maintained its downward slope after it registered a drop of $0.47 to start selling at $71.84 a barrel.