By KENNEDY MUPESENI –
THE Kwacha yesterday exhibited some signs of steadiness on average trading between K6.35 and K6.50 for a United States dollar.
A snap check at most of the bureaux and commercial banks in Lusaka Central Business District indicated that the local currency was somehow stable yesterday.
The Kwacha at Struts Bureau De Change, on Freedom Way was yesterday at K6.30 and K6.40 per dollar as the previous day for buying and selling respectively while Forex King Bureau De Change in Cairo Road, it was K6.40 and K6.58.
At Golden Coin Bureau De Change located at Central Park, on Cairo Road, it was trading at K6.40 and 6.55 as opposed to the previous day’s figures of K6.40 and K6.60 respectively.
Indo-Zambia Bank Cairo North-end the Kwacha against the dollar was trading between K6.20 and K6.50, while UBA Bank was between K6.39 and K6.55 as previous day.
At Access Bank Zambia Cairo North-end branch, the local currency was trading between K6.42 and K6.56 buying and selling respectively.
According to local money market rates by Zanaco, the Kwacha fell against the dollar on Wednesday on news of the death of President Michael Sata.
It slipped to a four-month low.
The daily treasury newsletter said the local currency opened trading at K6.48-K6.50, 11 ngwee lower than its close on Tuesday.
It stated that the Kwacha was pushed lower by early dollar demand as players factored in the tragic news, however, demand waned and the local currency found its equilibrium around K6.42/6.44 where it hovered for most of the day.
The support for the local currency also came through from dollar selling from the central bank which committed to maintaining stability in the markets and that the Kwacha eventually closed at K6.410/6.430, down almost 5 ngwee on the day.
It further said going forward the Kwacha was expected to trade on the back foot, ranging between K6.37 and 6.47 on average.
The prices of copper dropped on Wednesday for the first time in four days as the Federal Reserve’s decision to end its bond-purchase programme strengthened the dollar.
This reduced the appeal of commodities as an alternative investment and the metal retreated by as much as 1.2 per cent after closing on the same day at the highest in six weeks.
