Kwacha in short-lived recovery

FRIDAY’S trading session saw the Kwacha recover briefly against the US dollar as it opened at K7.830/K7.850,before it touched a high of K7.800/K7.820.
According to Cavmont Bank Zambia daily market report, local currency gains were short lived as strong dollar demand on Interbank as well as from corporate buyers later pushed it back to its opening levels.
The bank further reports that the local unit was likely to remain firm in the interim, with some resistance being expected above the K7.900/$1 psychological barrier.
The local currency then closed at K7.855 / K7.875,-K0.055 weaker than its opening levels.
On the money markets, the bank reported that commercial banks’ aggregate current account balance decreased further by K54.37 million to K653.06 million. The overnight borrowing and lending rate declined by 0.09 percent to 14.74 percent making total funds traded on Interbank at K410.50 million.
Meanwhile, the bank reports that copper price has continued to record a decline with the latest drop of $15.00 making the red metal trade at $5,165.00 a tonne.
Price for Brent crude oil has also followed suit after declining by $0.34; the commodity is now trading at $48.88 a barrel. On the other hand, gold is trading at $1,094.66 an ounce after the precious metal registered an increase of $8.54.