3 December 2013

Zambia: Kwacha Still Falling

THE Kwacha has continued its downward trend against the United States Dollar, weakened by strong buying activities on the interbank market.

According to a newsletter published yesterday, the local currency weakened in early trade opening 1 ngwee down from its previous close at K5.51/K5.53 and slipping further to a low of K5.54/5.56 where it also closed.

"The Kwacha came under pressure from strong dollar interest from interbank players and importers whilst sellers were relatively subdued".

"It was down 4 ngwee for the day and was also down 5 ngwee in November from its close in October. It was down for a second successive month," Zanaco said.

In the near term the Kwacha is likely to remain on the back-foot against the dollar trading between K5.50 and K5.58.

Meanwhile, copper ticked higher this week, supported by a weaker dollar and falls in stockpiles, but still posted its biggest monthly loss since June on expectations of growing supply and tepid demand going forward.

Benchmark three-month copper on the London Metal Exchange (LME) closed 0.5 per cent higher at $7,055 a tonne.

Copper has rebounded from a three-month low of $6,910 hit last week, but prices have given up 2.7 per cent.

Copyright © 2013 The Times of Zambia. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.