Kwacha remains broadly stable against the dollar
Written by Millennium on July 31, 2019
SUN BUSINESS REPORTER writes
THE Zambian Kwacha was broadly stable against the dollar on Monday, drawing support from inflows by corporates converting dollars to wind up on their traditional month end local currency obligations.
The Kwacha, according to Barclays Bank Zambia market update, closed at its opening level of K12.875/12.925 to the dollar on the bid and offer respectively as demand and supply was in equilibrium on the day.
Near term, the local unit is likely to post minor gains.
On money market, the bank reported that liquidity levels and volumes of funds traded on the interbank improved on to K690.35 million and K430.00 million from K529.91 million and K180.00 million respectively.
The daily weighted average interbank lending rate was little changed at 10.36percent from 10.47percent
The local market where subdued yesterday with yields remaining relatively unmoved on the day.
On international metal market, the bank reported that the copper prices rose on Monday before planned U.S.-China trade talks and a flood of economic data, while shrinking profits at Chinese industrial firms highlighted the headwinds facing demand in the top consuming country.
Benchmark copper on the London Metal Exchange (LME) ended up 0.9percent in official rings to $6,018 a tonne.
At the same time gold prices firmed on Monday on expectations of a rate cut by the Federal Reserve this week, while investors awaited cues on the future trajectory of monetary easing by the U.S. central bank.
Spot gold inched up 0.2percent to $1,420.51 per ounce. U.S. gold futures settled up 0.1 percent at $1,420.40. an ounce
Oil prices fell on Monday after Iran described emergency talks on a multi-party nuclear agreement with a group of signatories as “constructive”, suggesting an easing of tensions in the Middle East.
Brent crude futures were down 23 cents, or 0.4percent, at $63.23 a barrel. Prices rose 1.6percent last week.