Kwacha trade on strong note

THE Kwacha is expected to continue on a strong note against the United States (US) dollar this week to trade between K9.90 and K10.10 as copper price on the international market hovered close to three-week high yesterday.
Zanaco attributed the strengthening of the local unit to anticipated increased dollar inflows from corporates and low local currency liquidity.
In its daily treasury newsletter, the bank says the Kwacha opened the week on a high against the greenback with an intra-day gain of five ngwee on Monday.
“The Kwacha is likely to firm this week supported by dollar conversions by companies for pay-as-you-earn obligations, participation in the upcoming treasury auction and low local currency liquidity,” the statement reads.
On Monday, the Kwacha opened trading at K10.10 and K10.15, it quickly showed strength to touch an intra-day high of K10.05 and K10.10.
Zanaco also says the local market activity was relatively subdued with the move in the currency being mostly driven by the absence of dollar buyers on the day.
First National Bank also says the Kwacha/dollar pair looks set to trade between K10.00 and K10.15 with a bias towards appreciation.
“Dollar/Kwacha traded in a mild manner on Monday given the short trading day,” the bank says in its daily treasury report.
On the regional front, South Africa’s rand was firmer early on yesterday to trade at 14.31 per dollar compared to 14.44 on Tuesday while the Botswana pula, Kenyan shilling and Nigerian naira remain unchanged at 10.713, 101.08 and 304.5 respectively.

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