Kwacha bullish against Dollar

Sat, 10 Jun 2017 08:41:21 +0000

By BUUMBA CHIMBULU 

THE Kwacha has rebound by holding strong against the US Dollar, touching an intra-day high of K9.200/K9.250 from its opening levels of K9.240/K9.290 following increased inflows from corporate sellers and exporters.

This development follows weeks after the local currency suffered a strong setback, enduring the bullish from the green back which had recorded positive performance on the exchange rate market.

The rebound, which began this week on Tuesday when the local currency traded between K9.300 and K9.350 per US Dollar, saw better performance on Thursday of K9.240/K9.290.

According to Cavmont Bank Zambia daily market report, the Kwacha’s performance on Thursday was mainly driven by increased inflows from corporate sellers and exporters still looking to fulfil mid-month obligations.

This comes after predictions from Cavmont Bank on Tuesday that the local unit was likely to post further gains as supply was anticipated from more sellers in the short term.

“The local currency closed at K9.220/K9.270 and is likely to post further gains in the short term should demand from importers and buyers remain weak,” reads the report.

Meanwhile, copper prices on the London Metal Exchange (LME) equally registered an increase hitting US$5,704.00 a tonne.

Prices for the red metal recently suffered a setback on the LME hitting an intra-low of US$5, 350.00 a tonne.

As of Thursday this week, a tonne of the red metal was trading at $5,704.00 after registering an increase of $96.50.

The development indicated that the prices went up by about US$3.00 between Tuesday and Thursday trading sessions.

Cavmont indicated that a tonne of the red metal on Tuesday this week was trading at $5,572.50.