KWACHA STILL IN TROUBLED WATERS
Written by Millennium on June 4, 2019
BUSINESS REPORTER writes
THE Kwacha closed the month at K13.200 / K13.2500 compared to its opening levels of K12.795 / K12.985 at the start of the month.
In Friday’s trading, the local unit touched an intra-day high of K13.200 / K13.250 from the day’s opening levels of K13.300 /K13.400.
According to Cavmont Bank Zambia daily market report, very little activity was seen from corporates on the buy side while some exporters were seen making some conversions to settle month end obligations.
This resulted in the local unit appreciating marginally during the afternoon session as it was later seen being quoted at K13.200 / K13.250, a level it closed at.
The Kwacha is likely to continue trading within current levels, with movements being expected on either side depending on demand and supply factors.
On money markets, the bank reported that commercial banks’ aggregate current account decreased by K69.41 million to K794.93 million while the overnight borrowing and lending rate increased by 0.03% to 10.18 percent.
Total funds traded on Interbank were K422.30 million.
On international commodity markets, Cavmont reported that the price of copper on LME has continued to drop and Friday went down by $39.00 to push the red metals trading price to $5,822 a tonne.
But the price of gold rose by $17.00 and the precious metal was currently selling at $1,297 an ounce.
The bank further reported that the price Brent crude oil shot up by $4.15 and the commodity was now trading at $64.80 a barrel.