Kwacha extends winning streak, gains on the back of Bank of Zambia interventions, increased interbank inflows

The Zambian Kwacha continued its upward trajectory on Tuesday, marking a fifth consecutive session of gains against the US dollar.

According to Bloomberg data, the local currency appreciated by 0.16 percent to close just below K28.100 per dollar.

The Kwacha traded strong throughout the session as supply outpaced demand, with the central bank stepping in to support the market alongside increased inflows in the interbank market.

In its daily market update, Absa Bank Zambia noted that short-term movements of the Kwacha would largely depend on prevailing market dynamics, with supply and demand playing a key role in determining its trajectory.

Read more: Kwacha shows steady progress against US dollar but market projects tendency towards losses

“The market opened with the local unit’s interbank bid-offer at K28.050/28.100, before strengthening to K27.925/27.975 later in the session, where it eventually closed,” Absa stated in its report for Tuesday, released on Wednesday.

Meanwhile, broader foreign exchange markets traded within a narrow range in Asian markets, influencing the US Dollar Index, which hovered around 104.15 as the European trading session commenced.

Investors remained cautious ahead of the implementation of broad-based US tariffs set to take effect on Wednesday.

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