Exchange RateHeadline News

Kwacha continues to weaken

By BUUMBA CHIMBULU

THE Kwacha continued to post losses against the greenback on Thursday on the back of sustained dollar demand from various market players. 

According to the financial markets, the Kwacha continued with its downward trend against the dollar on Wednesday’s trading session.

Absa Bank Zambia daily market stated that opening the day at K17.800/17.850 to the dollar, the local unit weakened further in the afternoon session to close 7.5 ngwee at K17.875/17.925 on the bid and offer respectively. 

“We anticipate to see the local unit trade on the back foot due to low dollar supply to meet the build-up in demand,” the bank indicated.

And Access Bank Zambia stated that the Kwacha opened at 17.850/17.900 and closed at 17.900/17.950 on the interbank market. 

It indicated that the local unit was expected to maintain a bearish trajectory in the short term as demand for hard currency continues to outweigh market supply.

Meanwhile, the bank stated that the dollar climbed to multi-week highs against other major currencies on Thursday, bolstered by the prospects for faster and larger interest rate hikes in the months ahead. 

It indicated that as London trade got under way, the dollar index held at its highest levels since mid-December, while the euro languished at two-month lows of US$1.11930. 

The greenback also hit its highest levels in more than a year against the New Zealand dollar and a seven-week peak against Australia’s currency.

“The South African rand opened weaker on Thursday after Federal Reserve Chair Jerome Powell primed investors for United States. interest rate hikes, causing the dollar to leap.  “The rand traded at 15.4300 against the dollar, 0.6 percent weaker than its previous close,” the bank stated.

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