TRYNESS TEMBO, Lusaka
THE Kwacha is expected to remain strong against the United States (US) dollar in the near-term due to continued healthy corporate, interbank
inflows and financial market players’ project.
United Bank for Africa (UBA) says the local currency market yesterday opened trading at K8.92 and K8.97 on the interbank at par with Wednesday’s close.
In its treasury newsletter, the bank says the strong tone set by the Kwacha against the greenback is expected to continue.
“In the near term, we expect the local unit to trade in the range K8.90 and K9.00,” the newsletter reads.
Similarly, Zanaco, in its daily treasury newsletter says the Kwacha is expected to continue trading with a firm tone against the dollar on the back of strong corporate and interbank inflows converting greenback to meet their mid-month obligations.
The trading range for the local currency is expected to be between K8.90 and K8.96 in the near-term.
On Wednesday, the Kwacha recorded another strong session against the dollar as it gained for a second consecutive day.
“Market players posted the local unit at K8.93 and K8.98 per dollar at market open, unchanged from the previous day’s close.
“Intra-day trading witnessed healthy corporate dollar inflows to see the Kwacha touch a high of K8.875 and K8.925 before finally, closing at K8.90 and K8.95 on the bid and offer respectively,” the newsletter reads.
On the regional front, the South African rand firmed yesterday recovering ground following a slide to a one-month low after President Jacob Zuma survived a no-confidence vote, as traders bought at current levels in anticipation of a further retreat.
The rand was 0.04 percentage point firmer at 13.4500 per dollar compared to a close of 13.4525 overnight in New York, according to Reuters reports that.
The Ugandan shilling also held steady on Wednesday, underpinned by lower demand for hard currency from importers to trade at 3,610 and 3,620, the same level as Tuesday’s close.