SUN BUSINESS REPORTER writes
@SunZambian
THE Zambian Kwacha posted slight gains against the dollar on Wednesday on the back of decent supply of dollars and subdued importer demand.
According to Barclays Bank Zambia market update, the local unit was quoted at its previous day’s close of K13.070/13.120 to close 2 ngwee stronger at K13.05/13.10 on the bid and offer respectively.
In near-term, the local currency was anticipated to post more gains as corporate conclude their salary conversions.
On money market, the bank reported that liquidity levels in the market witnessed an increase moving from K343.00 million seen the previous day to K661.99 million while the volumes of funds traded on the interbank were little changed from K236 million to K240 million.
The overnight interbank rates however reduced from 10.93 percent to 10.71 percent.
Barclays further reported that the Market remained subdued on Wednesday with very little activity.
The government will however, be in the market for the T-bill auction trading on the shorter side of the curve in 91 days, 182 days 273 days and 364 days tenors.
On the international market scene, the bank reported that the price of copper on the London Metal Exchange (LME) edged down on Wednesday, as the lack of any clear moves to resolve the protracted U.S.-China trade conflict weighed on the demand outlook for the red metal.
Three-month copper on LME edged down 0.1 percent to $5,677 a tonne.
In the same report, Gold prices held steady on Wednesday, trading close to a more than six-year high on fears of an economic slowdown amid a protracted Sino-U.S. trade conflict, boosting appetite for the safe-haven metal.
Spot gold was steady at $1,542.90 per ounce.
The bank also reported that oil prices rose nearly 2 percent on Wednesday after a larger-than-expected decline in U.S. crude stockpiles helped ease worries about weakening oil demand caused by the trade war between Washington and Beijing.
Brent crude futures settled 98 cents, or 1.7 percent, higher at $60.49 a barrel. West Texas Intermediate crude ended at $55.78 a barrel, rising 85 cents, or 1.6 percent
