Monday, December 2, 2024
HomeBusinessKwacha continues to gain strength against the dollar

Kwacha continues to gain strength against the dollar

BUUMBA CHIMBULU writes

@SunZambian

THE Kwacha has continued to strengthen against the dollar due to corporates converting for tax obligations amid reduced dollar demand from the energy sector and merchandise importers.

As at 08:30hours, commercial banks quoted the Kwacha at K12.800/12.850 per dollar, unchanged from Thursday’s close.

According to Barclays bank Zambia daily market update the local unit gained gradually on the day to close seven ngwee stronger at K12.725/12.775 on the bid and offer respectively.

The Kwacha, said the bank, was likely to trade bullish in the near term on the back of healthy dollar inflows.

And the Zambia Industrial Commercial Bank said the Kwacha posted further gains against the greenback on Tuesday and was buoyed by increased supply.

“The local unit touched a multi-session high of 12.900/12.950 last seen in the previous week. The currency pair is likely to receive additional support from month-end conversions.

“The Kwacha closed at 12.925/12.975, K0.1 stronger than its opening levels and remains in positive territory compared to a basket of currencies which have generally weakened against the world’s reserve currency,” said the bank.

Elsewhere, South Africa’s rand was little changed against the dollar early on Friday, as investors braced for U.S. employment data, a key release that could stoke or temper market expectations about aggressive policy easing by the U.S. Federal Reserve.

The rand traded at 14.0550 per dollar, not far off its New York close of 14.0500 on Thursday.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Observer. on SEX PILLS IN WATER
Dr. I.P.A. Manning on THE BAN OF POACHERS IN ZAMBIA
Lulumbi on EXPENSIVE WORSHIP
Patrick Bwalya on THE ALEX CHOLA FACT-FILE
Patrick BWALYA on DRIVER HACKED, LEFT FOR DEAD