TRYNESS TEMBO, Lusaka
THE COPPER price on the international market was stable yesterday due to the weakened United States (US) dollar as the Kwacha is anticipated to start the week on a weaker footing.
On Monday, the dollar suffered near a seven-month low after US jobs growth in May missed expectations.
Reuters reports that London Metal Exchange (LME) copper was trading flat at US$5,665.50 a tonne, following a 0.6 percentage point loss on Friday.
It says the price of copper has been trapped in a US$5,460 to US$5,770 range since early last month.
“London copper was steady on Monday, supported as the dollar weakened following a disappointing US jobs report, while zinc and nickel prices tracked renewed weakness in steel markets,” Reuters reports .
Meanwhile, Reuters says LME zinc traded over three times the volume of copper, with traders looking for opportunities in the price gap between London and Shanghai.
On the local currency market, First National Bank says going into the weekend, pressure continued to bear on the Kwacha as supply progressively slowed, while demand persisted.
On Friday, the local unit opened trading at K9.30 and K9.35, it lost a further K0.03 to close at K9.33 and K9.38.
“The unit is likely to start the week on a weaker footing, with a possibility of hitting the K9.40 multi-week level,” the bank says in its daily treasury newsletter.
Cavmont says despite subdued market activity from most corporates, the Kwacha has continued to come under pressure owing to reduced supply from sellers.
On bank notes elsewhere in the global markets, the US dollar fell against most major convertibles following a disappointing non-farm payrolls report which was less than forecast.
Similarly, Zanaco says strong greenback demand from corporates is expected to keep the local unit on the back foot in the short term and is anticipated to trade in the range of K9.30 and K9.40.