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Kwacha closes on strong foot

LAST week, the Kwacha closed on a strong note against the United States dollar trading between K9.90 and K10.00 due to the bond auctioned on Friday and month-end corporate inflows, financial market players have said.
Zanaco says the local unit edged up against the dollar in mixed trade on Thursday with buying and selling interest in the foreign currency by market players fairly matched on the day.
“Support from Friday’s bond auction and month-end corporate hard currency inflows is expected to help the Kwacha close the week on a firm note trading between K9.90 and K10.00,” the bank says in its daily treasury newsletter.
On Thursday, the Kwacha opened trading at K9.95 and K10.00, a two ngwee improvement from its previous close.
The local unit slipped to a low of K10.00 and K10.05 in the morning session which was dominated by importers seeking the dollar and other major currencies.
The bank says a pickup in dollar selling from exporters and offshore players in latter trade, however, helped the Kwacha recover its losses to close at its opening level on Thursday.
First National Bank (FNB) Zambia, in its daily newsletter, also says the local unit on Thursday traded on the front foot against the greenback.
The bank says the Kwacha/ dollar pair on Thursday seemed set for a gloomy day, with trades going above the K10.06 level.