Business

Kwacha to remain stressed

TRYNESS MBALE, Lusaka
THE Kwacha is expected to stay under pressure against the United States (US) dollar as the market witnesses a steady flow in importer demand but, it might, however, receive some support from exporters looking to convert to settle their month-end tax obligation, financial market players say.
Zanaco Bank says the local unit is anticipated to trade within the range of K6.60 and K6.70 in the short-term.
“The Kwacha is expected to remain under pressure as the market witnesses a gradual surge in importer demand though it could receive some support from exporters looking to convert to settle tax obligations and Bond auction settlements,” the bank says in its daily treasury newsletter.
On Thursday, the trading session witnessed the Kwacha rebound against the dollar.
The Kwacha opened trading at   K6.65 and K6.67 level, it fell 30 ngwee to reach an intra-day low of K6.68 and K6.70 its lowest level this year.
The bank says the local market activity was relatively subdued with the move in the currency being mostly driven by the absence of dollar sellers on the day.
It, however, says the sale of the greenback by the Central Bank eased pressure on the local unit to close at its opening levels.
Similarly, Cavmont Bank, in its market report says the kwacha closed trading on Thursday at K6.67 and K6.69 which was K0.01 stronger than the day’s opening rate.
The bank says the local unit traded on the back foot against the dollar in early trades. The currency pair opened at K6.68 and K6.70 before touching intra-day lows of K6.69 and K6.71.
It says the Kwacha managed to recover its earlier losses following improved dollar inflows on the interbank to touch intra-day highs of K6.65 and K6.67.
Access Bank morning digest also says the Kwacha is expected to remain trading weak against the dollar due to demand for the greenback on the market.
The local unit opened trading at K6.67 and K6.69 and closed at K6.67 and K6.69 on interbank. The kwacha traded flat on Thursday.



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