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Thursday’s market session saw a bullish performance by the Zambian Kwacha against the United States (US) dollar, driven by increased supply-side inflows that adequately met demand.
In the short term, the Kwacha is expected to maintain a steady range as dollar supply was projected to rise next week, with corporates converting funds to meet pending tax obligations.
This analysis is part of Absa Bank Zambia’s daily market update issued on Friday.
Read more: Kwacha maintains stability against dollar, minor losses anticipated
“The market opened with the local unit’s interbank quoted at K26.430/26.480 by commercial banks in Lusaka, appreciating to K26.300/26.350 around midday and closing the session at K26.250/26.300 on the bid-offer, 18 ngwee stronger than its opening price,” the update noted.
In regional markets, the South African rand extended gains on Thursday, benefiting from improved risk sentiment amid bets for a deeper interest rate cut in the United States later this month.
The rand traded at 17.73 against the dollar, 0.81 percent stronger than its Wednesday close, bolstered by a weaker dollar following a drop in US job openings to a three-and-a-half-year low in July.
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