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The Zambian Kwacha maintained a tight range in Thursday’s trading session as demand and supply for the United States dollar remained nearly balanced.
Market expectations suggested that the local currency will continue on a similar trend, maintaining stability in the near term with a slight bias toward minor losses.
This is according to the daily market update released by Absa Bank Zambia.
“Commercial banks in Lusaka quoted the local unit’s interbank rate at K25.925/25.975 at market open and traded at these levels until noon when it dipped to K25.950/26.000, but later recovered 2.5 ngwee to close the market at K25.900/25.950 on the bid and offer, respectively,” the update noted.
The report also indicated subdued activity in the local market on Thursday, with all yields remaining flat across all tenors.
Investors are expected to be active in view of today’s bond auction.
Elsewhere, the South African rand strengthened on Thursday to its highest level in 13 months, buoyed by a resurgence of risk appetite in financial markets ahead of key US inflation data, which could solidify expectations for rate cuts in the world’s largest economy.
By afternoon, the rand traded at 17.7675 against the dollar, approximately 0.38 percent stronger than its previous close, having hit 17.6775 earlier in the day, marking its best performance since late July 2023.
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