KALONDE NYATI, Lusaka
THE Kwacha yesterday recorded a marginal depreciation although it is expected to recoup its marginal losses as corporates meet their tax obligations.
United Bank for Africa (UBA) says the local currency market opened the day at K8.81 and K8.86 on the interbank slightly weaker than Tuesday’s close.
“The local unit traded on the back foot against the greenback but is expected to recoup its marginal losses into the month-end. In the near term, we expect the local unit to trade in the range K8.75 and K8.95 on the bid and offer respectively,” the bank says in its daily treasury update.
Zanaco Bank also says that despite the foreign exchange market witnessing thin dollar inflows, the local unit is expected to trade steadily against the dollar in the near term ranging between K8.80 and K8.90.
On Tuesday, the Kwacha firmed, helped by subdued appetite for dollars from corporate and interbank buyers, as well as slim dollar inflows from exporters.
Similarly, First National Bank (FNB) says the Kwacha is expected to remain range-bound.
“With supply and demand netting off in a timely fashion, the rate was little moved staying put at K8.83 and K8.88 throughout Tuesday session. The market is evenly poised for a move lower or higher. We thus expected the current range to hold for a good part of the week,” FNB says in its market update.
The bank says the bond market has been quiet with little price movement.
“Market players remain none the wiser as to interest rate direction considering the mixed signals the market has received. This perhaps is the reason bid and offer prices have failed to converge,” the bank says.