Kwacha still under immense pressure from the dollar

THE Kwacha on Wednesday continued to come under pressure against the US dollar, breaching the K10.000/1$ psychological barrier following a further reduction in supplies of the greenback from exporters.

The currency pair was trading at K9.950 / K10.000 in early trade, but was later being quoted at K10.050/K10.100 by midday.

According to Cavmont Bank Zambia daily market report, the local unit is expected to rebound in the short to medium term as sellers convert to meet monthend obligations.

The Kwacha closed at K10.200 / K10.250, K0.25 weaker than the day’s opening levels.

Commercial banks’ aggregate current account balance decreased by K61.65 million to K746.33 million while the overnight borrowing and lending rate increased by 0.11 percent to 18.13 percent.

Total funds traded on Interbank were K252.50 million.

The central bank continued conducting Open Market Operations (OMO) market and was looking to reduce market liquidity by K300 million.

The Lusaka Stock Exchange (LuSE) All Share Index fell by 0.45 percnt to register 4, 697.77 points.

On the international markets there was good news for copper whose price posted a rise of US$47.00 to drive the selling price of the red metal to US$4,930.00 a tonne.

The bank further reported that the price of gold went up marginally by a US$0.06 rise, to push the selling price of the precious metal to US$1,322.00 an ounce.

Brent crude oil price collapsed further by US$1.42 and the commodity was presently trading at US$42.80 a barrel.