KWACHA MAINTAINS STANCE AGAINST THE DOLLAR
Written by Millennium on September 5, 2019
SUN BUSINESS REPORTER writes
THE Zambian Kwacha was barely moved against the dollar on Tuesday amid subdued dollar buying and selling activity from importers and exporters.
The Kwacha opened its trading session at K13.050/13.100 per dollar and closed 1 ngwee lower at K13.060/13.110 on the bid and offer respectively in a market that seemed to be in equilibrium.
This is according to Barclays Bank Zambia daily market update released yesterday in Lusaka
In the short term the bank reported, the local unit was likely to remain stable as market participants stay on the fence to watch the currency’s next move.
On money market, Barclays reported that liquidity levels dropped slightly on Tuesday to K1,199.45 billion from K1,459.43 billion seen on Monday with the volumes of funds traded on the interbank also decreasing to K459.00 million from K560.00 Million.
The overnight interbank rate inched up to 11.10perent from 11.08percent.
The local market was subdued in yesterday’s trading session with yields remaining relatively unmoved on the day.
On international commodity market, the bank reported that London copper prices rose on Wednesday after touching their lowest in more than two years in the previous session, supported by worries about supply disruption and better-than-expected demand.
Three-month copper on the London Metal Exchange (LOME) rose 0.4% to $5,633 a tonne.
The contract dropped to $5,518 a tonne in the previous session, its lowest since May 2017, as weak U.S. economic data stoked global recession fears.
Gold price rose more than 1percent on Tuesday after weak manufacturing data from the United States reinforced fears of an economic downturn, while uncertainties over U.S.-China trade ties and Brexit further boosted bullion’s safe-haven appeal.
Spot gold rose 1percent to $1,546.30 per ounce not far off its more than six-year high of $1,554.56.
On oil, the bank reported that prices recovered some ground on Wednesday after touching their lowest in close to a month during the previous session on concerns that a weakening global economy could depress demand.
