By 
With the year drawing to a close, market activity within the Zambian economy is expected to remain relatively subdued.
In the short term, the Kwacha is likely to face pressure against the US dollar, as demand for the US dollar rises amid limited supply from market participants.
“The Zambian Kwacha weakened against the US dollar on Monday due to increased demand for the greenback, while foreign currency inflows remained limited.
“At 8:30 AM in Lusaka, the Kwacha was quoted at K27.750/27.800 per dollar on the interbank market, before slipping to K27.775/27.825 by market close,” the Absa update showed.
Elsewhere, South Africa’s rand weakened on Monday in thin year-end trading.
The rand traded at 18.77 against the dollar, about 0.5 percent weaker than its previous close.
The dollar index was last up 0.1 percent against a basket of other major currencies.
Meanwhile, base metals were mixed on Tuesday, the last trading session of 2024, as positive China factory activity data countered pressure from a stronger United States dollar.
China’s manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed.
This suggested fresh stimulus measures were supporting the world’s second-largest economy, according to the Absa Bank daily market update.
“A stronger dollar makes it more expensive for holders of other currencies to buy greenback-priced commodities.
“Three-month copper on the London Metal Exchange (LME) rose 0.3 percent to US$8,934 per metric tonne by 0200 GMT. It has risen 4.38 percent so far this year,” the update showed.
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