Kwacha loses grip against the dollar

THE Kwacha on Monday surrendered further gains against the US dollar following dwindling supplies of the vehicle currency.

The USD/ZMW currency pair opened at K9.450 / K9.500 and by mid-day it was trading close to the K9.600/$1 psychological barrier.

According to Cavmont Bank Zambia daily market report, the Kwacha closed at K9.700 / K9.750, K0.25 weaker than the day’s opening levels.

On local money markets, the bank reported that commercial banks’ aggregate current account balance declined by K286.42 million to K966.9 million while the overnight borrowing Interbank and lending rate reduced by 0.01 percent to 18  percent.

Total funds traded on Interbank wereK276.60 million.

The Bank of Zambia (BoZ) returned to the Open Market Operations (OMO) market and was looking to reduce market liquidity by K500 million.

The Lusaka Stock Exchange (LuSE) All Share Index remained unchanged at 4,718.94 points.

On the international markets, copper prince continued on its downward drift and posted a further drop of US$57.50 to drive the selling price of the red metal to US$4,918.50 a tonne.

The price of Brent crude oil too suffered a slight jolt of US$0.98 and the commodity was presently selling at US$44.92 a barrel

Similarly the price of gold fell by US$6.00 to push the selling price of the precious metal to US$1,313.84 an ounce.