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The Zambian Kwacha weakened against the United States (US) dollar during Monday’s trading session, as demand for the greenback outweighed supply.
Market trends indicate that the Kwacha is expected to trade with a bias toward further depreciation against major currencies, given the limited dollar supply amid increasing demand.
According to Absa Bank Zambia’s daily market update, the USD/ZMW interbank opened at K27.900/27.950 and remained within this range until midday.
The local unit eventually depreciated by 0.09 percent, closing the day at K27.925/27.975 on the bid and offer, respectively.
In the money market, the volume of interbank funds traded on Monday dropped to K305 million from K320 million recorded in the previous session, while the weighted overnight interbank rate held steady at 14.00 percent.
Liquidity levels, however, rose to K7.05 billion from K5.59 billion.
Base metal prices showed mixed performance on Tuesday as investors reacted to US President-elect Donald Trump’s denial of a report regarding reduced tariffs.
On the London Metal Exchange (LME), three-month copper fell 0.2 percent to US$8,988 per metric tonne.
Oil prices also eased on Tuesday, extending losses into a second consecutive session after last week’s rally. Brent crude futures slipped by eight cents, or 0.1 percent, to US$76.22 a barrel, while US West Texas Intermediate (WTI) crude fell 15 cents, or 0.19 percent, to US$73.42.
Concerns about tighter Russian and Iranian oil supplies due to expanding Western sanctions limited further declines in oil prices.
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