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The Zambian Kwacha edged lower against a basket of major currencies in Tuesday’s trading session.
The local currency neared two-month low to close at 22.9750 against the greenback during the trading session.
Access Bank in its daily market update indicated that the local unit was quoted at 23.00 against the dollar, marking an all-time low in its trading history, crossing the K23.00 psychological barrier.
“The local currency is anticipated to exhibit results of the trade-off between low dollar supply and large hard currency demand in the near-term by its continued depreciation,” according to the bank.
And ABSA bank Zambia anticipated similar trend in the near term given the demand and supply imbalance in the market.
Read more: Kwacha passes K23/dollar mark, first time in post Covid-19 era
“Yesterday’s [Tuesday] trading session was characterised by demand and supply imbalance with demand emanating from various sectors of the economy edging upwards while supply remains subdued.
“At 08:30hrs, Commercial banks in Lusaka quoted the kwacha at K22.900/22.950 per dollar, and was down seven ngwee to close market at K22.970/23.020 on the bid and offer respectively,” Absa state.
On metals, copper on Tuesday traded close to a five-week peak scaled in the previous session as the dollar weakened after softer United States inflation data fuelled bets that the Federal Reserve might be done hiking interest rates.
Three-month copper on the London Metal Exchange was almost flat at US$8,231 a metric tonne, after hitting its highest since October, 2 2023.
Oil prices rose in early Asian trade on Tuesday on Middle East tensions and a weaker dollar, while investors focused on inventory data after a two-week delay in reporting.
Brent futures rose 8 cents to US$82.55 a barrel, while United States West Texas Intermediate (WTI) crude rose two cents to US$78.28.
Meanwhile, gold prices extended gains on Tuesday supported by a weaker United States dollar and bond yields after data showing slowing inflation in the U.S. bolstered the view that the Federal Reserve was done with its rate-hike campaign.
Spot gold was up 0.2 percent at US$1,965.83 per ounce, after rising 0.9 percent overnight United States gold futures gained 0.2 percent to US$1,969.50.
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