Kwacha continues to strengthen against the dollar
Written by Millennium on June 7, 2019
BUSINESS REPORTER writes
@SunZambian
THE Zambian Kwacha continued to reverse earlier losses against the dollar on Tuesday for a second straight session this week with little demand for the greenback from corporates and retail clients.
According to Barclays Bank Zambia market up date, the local currency gained gradually in both the morning and afternoon session opening the day at K13.10/13.15 per dollar and closing the session 10 ngwee stronger at K13.00/13.05 on the bid and offer respectively.
Near term, the local unit is anticipated to trade steady with factors of demand and supply being the main drivers of the currency’s next move.
One Money Market the bank reported that liquidity levels in the market slightly decreased on Tuesday moving from K648.14 to K640.28 with the interbank traded volumes gradually decreasing from K442.30 to K441.
The cost of borrowing funds on the interbank was at 10.20%.
The local markets were subdued in yesterday’s session with very little activity seen on the day.
On international commodity markets, Barclays reported tht copper prices hovered near a five-month low on Tuesday as an escalation of the U.S.-China trade war reinforced concern about demand for industrial metals while the weaker dollar provided some support.
Benchmark copper on the London Metal Exchange (LME) ended 0.8% higher at $5,878 a tonne but was still close to the Jan. 4 low of $5,801 touched on Monday
It further reported that oil prices ended as much as 1% higher on Tuesday after a global stock market rally pulled Brent crude from a four-month low touched earlier in the session.
Brent futures gained 69 cents, or 1.1%, to settle at $61.97 a barrel.
The global benchmark fell as low as $60.21 earlier in the session, its lowest since Jan. 29. U.S. West Texas Intermediate (WTI) crude rose 23 cents, or 0.4%, to $53.48, rising over a dollar from its session low.
Gold steadied below a three-month peak on Tuesday on news China was open to negotiating its trade dispute with the United States, while rising expectations the U.S. Federal Reserve will cut interest rates provided underlying support.
Spot gold eased 0.1% to $1,324.01 per ounce as of 1:43 p.m. EDT (1743 GMT), after touching its highest since Feb. 27 at $1,328.98 earlier in the session. U.S. gold futures settled up 0.1% at $1,328.70 per ounce.
