By BUUMBA CHIMBULU
THE Oil Marketing Companies (OMCs) primarily contributed to the further depreciation of the Kwacha on Friday, as the market witnessed a continued rise in demand for the greenback.
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The local unit was expected to post minor losses in the short run, according to a report by Access bank Zambia.
The local currency was reportedly in the red against the United States (US) dollar in Friday’s trading session.
“It opened at K27.170/27.220 and closed at K27.200/27.250 on the market interbank bid and offer respectively.
“The market witnessed a continued rise in demand for the greenback which was primarily driven by the Oil Marketing Companies while dollar trading remained relatively low,” the report indicated.
And Absa bank, also in its daily market, stated that Friday’s trading session saw the Zambian currency depreciate further against the U.S dollar due to limited supply.
It showed that commercial banks quoted the local unit at K27.250/27.300, where it traded up to market close.
“The expectation short term is that the Kwacha is likely to post more losses as market forces, government policy and negative sentiments surrounding the Zambian economy continue to be factors influencing the strength of the local currency,” the report stated.
Meanwhile, the US dollar rose against a basket of currencies on Friday after data showed that U.S. employers added 353,000 jobs in January, beating the 180,000 jobs economists had expected.
The dollar index was last at 103.57, up from around 103.00 before the data and up 0.50 percent on the day.
The euro fell to US$1.08205, from around US$1.08830 earlier.
The greenback rose to 147.70 yen, from around 146.65 before the data.
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