By 
The Kwacha has partially been lifted by the US$15 million injected into the market by the Bank of Zambia (BoZ).
The Central bank on Monday pumped in US$15 million into the financial market, reducing demand for the green back and reducing pressure on the local unit.
The Local currency is, however, expected to lose value in the short run, according to Access bank Zambia in its daily market update.
“The Kwacha ended lower against the US dollar in Monday’s trading session. It opened at K18.150/18.200 and closed at K18.180/18.230 on the market average interbank bid and offer respectively,” the bank indicated.
Absa bank Zambia in its daily market update indicated that in the short term, the Kwacha was likely to trade relatively steady with a bias to post minor losses on a close day basis in the absence of consistent inflows.
According to Absa bank, the Zambian Kwacha traded relatively steady in Monday’s trading session as supply from various corporates converting for their tax obligations was enough to hold off the demand.
“At 08:30, Commercial banks in Lusaka quoted the local unit at K18.200/18.250 on the bid and offer respectively, where it traded throughout the session until closure,” the bank stated.
Read more: Kwacha experiences mixed trading in June, as copper prices struggle on the London market
Meanwhile, prices of most base metals rose on Tuesday as a weaker dollar made greenback-priced metals cheaper to holders of other currencies.
The dollar weakened after United States Federal Reserve officials signalled the central bank was nearing the end of its tightening cycle.
Several Fed officials said on Monday the central bank would likely need to raise interest rates further to bring down still-high inflation, but the end to its current monetary policy tightening cycle is getting close.
Three-month copper on the London Metal Exchange rose 0.4 percent to US$8,402 per metric tonne, while the most-traded August copper contract on the Shanghai Futures Exchange increased 0.6 percent to US$9,435.11 per metric tonne.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments