Kwacha remains robust against dollar

THE kwacha has maintained its robustness against the United States (US) dollar, although the local currency has continued trading on a low foot, financial market players say.
On Friday, the kwacha was anticipated to trade within the range of K6.50 and K6.60 against the dollar.
In its market report Cavmont Bank says, “Despite trading on the lower end against the greenback, the local unit remains resilient and continues to resist any significant adverse movements.”
The bank says the kwacha closed trading at K6.59 and K6.61 after opening at K6.56 and K6.58 on Thursday, down by K0.03 compared to the previous day.
Similarly, Zanaco Bank, in its daily treasury newsletter says the kwacha has struck within the K6.50 and K6.60 range over recent sessions and was expected to hold on as at Friday.
The bank attributes this trend to local fundamentals.
It notes that the kwacha strengthened on the opening against the dollar on Thursday to an intra-day high of K6.51 and K6.53 from its K6.56 and K6.58 opening level, driven by exporter greenback inflows and interbank selling.
However, Zanaco says the gains were short-lived, as importers took advantage of these levels pushing the kwacha back up to close at K6.59 and K6.61 on the bid and offer, respectively.
Meanwhile, Access Bank says the kwacha is expected to continue trading weak against the dollar due to demand for the US currency on the market.
In its morning digest, the Access Bank says domestic currency opened trading at K6.56 and K6.58 and closed at K6.58 and K6.60 on interbank on Thursday.

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