SUN BUSINESS REPORTER writes
@SunZambian
THE Zambian Kwacha edged down against the dollar on Tuesday on the back of a pickup in demand from merchant importers, but stayed within its recent ranges.
At market close, commercial banks quoted the Kwacha at K12.540/12.570 per dollar, weaker than Monday’s close of K12.470/12.530, but well within its recent range.
According to Barclays Bank Zambia daily market update, the local unit is likely to post small gains in the short term as corporates prepare to pay salaries and wages.
The bank reported that the liquidity level in the money market dropped to K587.20 million from K818.70 million with the volume of funds traded on the interbank also increasing slightly to K186.00 million from K129.70 million.
The cost of borrowing funds on the interbank increased further to 10.42percent from 10.36percent as liquidity remained tight.
The local market yesterday was subdued with very little trades seen on the day.
On international commodity markets, the bank reported that London Metal Exchange (LME) copper closed 0.5percent firmer at $6,012 a tonne, having hit a two-week high of $6,037.50 after Rio Tinto flagged a cost blowout of up to $1.9 billion and a delay of up to 30 months at its Oyu Tolgoi underground copper mine in Mongolia, the miner’s key growth project.
Gold prices held steady on Tuesday as investors awaited retail sales data from the United States later in the session for cues on the health of the world’s largest economy.
Spot gold inched up 0.1percent to $1,414.92 per ounce. U.S. gold futures rose 0.2percent to $1,416.60.
Oil steadied after falling more than 3% overnight, with U.S. crude trailing Brent after U.S. inventory data fell short of expectations, amid conflicting signals from the U.S. and Iran over the disputes that have roiled prices recently.
Brent crude futures were up 16 cents at $64.51, or 0.3 o percent.. They ended 3.2percent down the previous session, after falling to the lowest since July 5.
