Kwacha staggers

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BUUMBA CHIMBULU

THE Kwacha retreated slightly following an uptick in demand from importers at the close of last week.

Earlier in the day, the currency pair was changing hands at K22.02/22.07, levels it maintained until mid-day on Thursday.

This is according to the Zambia Industrial commercial Bank (ZICB).

According to the ZICB in its market update, as at close of trade, the Kwacha was being quoted at K22.04/22.09, a movement of K0.02 compared to its opening levels.

In other local news, ZICB indicated that Thursday’s Treasury Bill auction was generally under-subscribed with K797 million being allocated.

ZICB said this was out of the K1.3 billion that was offered by the Bank of Zambia and yield rates on all the tenors remained unchanged.

“Market liquidity is currently K3.65 billion, compared to the previous day when it was K3.49 billion,” ZICB said.

In other news, ZICB said the United State dollar reached a fresh four-month high before slashing its gains on Thursday, as yields on U.S. Treasuries dipped and investors’ appetite for risk shrunk.

The dollar index was mostly unchanged at 92.6410 in mid-morning trading. Concerns about extended lockdowns in Europe also weighed on markets.

“German Chancellor Angela Merkel’s decision to ditch plans for a lockdown over Easter did little to improve sentiment.

“The euro was down 0.12 percent against the dollar, at UD$1.1800, with analysts forecasting it could embrace the US$1.16 range, as Europe’s economic recovery from the pandemic lags,” the Bank sai

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