29 January 2013

Zambia: Kwacha Struggles to Hold Ground

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American Dollar

THE local unit struggled to hold ground against the dollar as it broke through the KR5.300 psychological barrier on Friday, reversing the gains posted in the previous trading session.

The local unit began the day at KR5.275/5.295 on the bid and offer respectively.

According to Zanaco daily newsletter, with sustained demand persisting on Friday, the Kwacha could not hold on to its position and thus proceeded to touch a trading low of KR5.300/5.320 before closing of trading at KR5.290/5.310.

The report said in the near term, the Kwacha is expected to continue struggling against the dollar and should trade near the KR5.330 on the wide side on interbank.

Meanwhile, copper prices fell on Friday as reports of higher production at the world's third-largest miner of the metal, offset a soft dollar and signs of recovery in the United States, Europe and China.

Three-month copper on the London Metal Exchange closed at US$8,030 a tonne, reversing earlier gains that took it close to a two-week high.

It finished the previous session at $8,095.5.

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