Business

Kwacha maintains firm footing

By TRYNESS MBALE
THE Kwacha appreciated against the United States (US) dollar due to strong greenback supply on Friday to trade around K6.1, financial analysts say.
Zanaco Bank daily treasury newsletter says the local unit opened trading at K6.16 and K6.18 on Friday but later touched a high of K6.09 and K6.11 on the back of an interbank sell-off before closing at K6.11 and K6.13.
The bank says strong interbank dollar supply, tight monetary policy and local tax obligations were key drivers of last week’s firm run.
“The Kwacha gained more ground against the dollar on Friday on the back of an interbank sell-off as it broke below the key support level of K6.1,” the bank says.
It says the currency was expected to maintain its firm footing against the dollar in the near term with impending strong greenback demand, coupled with constant corporate supply on the market.
Zanaco says the Kwacha is anticipated to trade in the range of K6.10 and K6.15.
Similarly, Standard Chartered Bank daily brief says the Kwacha gained on Friday.
On the commodities market, Reuters reports that the copper price on the London Metal Exchange (LME) held near its lowest level in more than seven weeks on Friday as a downbeat outlook for the economy in top consumer China raised concerns about demand for industrial metals.
Three-month copper on the LME fell to a session low of US$6,823 a tonne, its weakest since June 23, before recovering some lost ground.

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