Business

Dollar demand, copper price hitting kwacha

KALONDE NYATI, Lusaka
DEMAND for the United States (US) dollar on the local market coupled with low copper prices on the international market has continued to put pressure on the kwacha, which has breached the K7 mark, Access Bank says.
Access Bank says in its daily digest that the kwacha is expected to remain under pressure.
“…the kwacha has continued to depreciate against the dollar opening at K7.00 and K7.02 on bid-and-offer, respectively, and closed at K7.03 and K7.05 on inter-bank [on Thursday].
“The kwacha is expected to remain weak against the dollar due to demand for the greenback on the market and lower copper prices,” the bank says.
On the commodity market, the price of copper on the London Metal Exchange (LME) edged down, after a solid US labour report boosted the dollar, with prices set to close the week little changed amid the Lunar New Year holiday in top consumer China.
Access Bank says three-month copper on the LME slipped 0.2 percentage point to US$5,738 a tonne.
“A rebound from five-and-half-year lows, touched in mid-January has run out of steam with top user China away from the market,” the bank says.

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