Kwacha weakens further

THE Kwacha came under further pressure against the US dollar for most of the trading session  at the weekend as it opened at K8.510/8.530 and later touched an intra-day low of K8.670 / K8.690 on interbank.

But copper made a dramatic recovery on the London Stock Exchange and went back over the US$5,000 psychological barrier.

According to Cavmont Bank Zambia daily market report, the weakening of the local unit was mostly driven by strong demand from some corporate buyers.

However, the Kwacha made a strong recovery to later trade at K8.495/K8.515 during afternoon trading.

The USD/ZMW currency pair closed at K8.570 / K8.590, K0.075 weaker than Thursday’s closing levels. On local money markets, the bank reports that commercial banks’ aggregate current account balance reduced further by K83.02 million to K1,170.64 million while the overnight interebank rate remained unchanged at 14.50 percent.

Total funds traded on Interbank were K417.50 million.

On international matters, the bank reports  that copper made  a steady recovery and posted a gain of $96.50 to trade at $5,090.50 a tonne. The same was true for  gold which registered an incresase of $0.96 and the precious metal is currently selling at $1,125.15 an ounce.

The bank  further reports that the price of Brent crude oil rose by $2.36 and the commodity is now selling at $47.17 a barrel.

The Lusaka Stock Exchange (LuSE) price index remained unchanged at 5,830.07.