Business

Kwacha gains against dollar

By NKOLE MULAMBIA
THE Kwacha posted gains against the United States dollar on Wednesday, helped by healthy corporate inflows, financial analysts have said.
According to the August 14 Zanaco daily treasury newsletter, the afternoon session witnessed increased corporate inflows to see the Kwacha close at K6.17/K6.19 on bid and offer.
At 08:30 hours, commercial banks posted the local unit at K6.20/K6.22 per dollar, unchanged from Tuesday’s close.
The Kwacha immediately showed weakness from open to touch an intra-day low of 6.205/6.225.
The Kwacha is expected to continue trading with a bullish tone against the United States dollar as corporates convert their foreign currency to settle their tax obligations.
The bank says trading range was expected to be at K6.15 and K6.25 in the short term.
And Cavmont Bank market report says the Kwacha remained range-bound for a second day against the dollar trading at K6.18/K6.20 by market close.
The bank says corporate buyers continue to resist at the current levels.
The local currency is expected to trade flat mostly due to thin dollar supply and demand remaining constant.
Meanwhile, Standard Chartered Bank daily brief says the Kwacha showed its vulnerability against United States dollar in early trades on Wednesday briefly breaching the psychologically important K6.20 level as buyers’ demand outweighed supply.
“However, by market close, it had regained some strength to close around K6.17–K6.19. It remains range-bound trading within K6.10-6.20,” the bank says.

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