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The Zambian Kwacha lost ground in Monday’s trading session on the back of of the resurgence of United States (US) dollar demand on the market.
On Monday, it had opened trading at K17.475/17.525 on the bid and offer respectively.
Read more: Kwacha’s recent gains slow down on the back of rising dollar demands
According to the Absa Bank market update posted on Tuesday, the local unit traded on the back foot throughout Monday Afternoon session before closing at K17.600/17.650 to a dollar.
On Tuesday morning, the dollar was quoted at commercial banks at K17.5159/17.8518 to a dollar.
“As the month draws to a close, we expect the local currency to trade fairly stable as month end conversions provide some support, but might lose further ground on the back of increased dollar appetite,” it stated.
On the money market, the report stated that the volumes of funds on the interbank in Monday’s session decreased to K703.00 million from K925.00 million.
The weighted overnight interbank rate decreased to 9.25 percent from 9.26 percent .
“The liquidity levels in the market increased to K2,513.66 million from the K1,319.13 million seen in the previous session,” it indicated.
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