By MAIMBOLWA MULIKELELA –
THE copper prices on the international market have hit their lowest in more than a week and notched up their biggest weekly loss in six weeks on Friday.
This is when the United States (US) dollar rallied after a strong US jobs report, with investors also worried about lacklustre demand in China.
Reuters said the three month copper on the London Metal Exchange slid 1.5 per cent to close at US$ 5.745 a tonne, having hit its lowest since February 24, 2015.
On the week, copper lost 2.5 per cent its biggest weekly decline since late January 2015.
Oil prices on the other hand, closed down on Friday, with benchmark Brent losing its most in a week since January 2015, as a resurgent dollar and fear of US rate hike diverted attention from the shrinking number of rigs drilling for oil in the US.
Reuters said worries about security of Libyan and Iraqi crude supplies, which had put a floor beneath the market in early trade also took a backseat.
Gold prices fell nearly three per cent to a three-month low on Friday after strong than expected US non-farm payrolls fuelled expectations on the Federal Reserve would raise rates sooner rather than later and the dollar jumped to an 11- one and half year high.
Spot gold was down by 2.6 per cent at US$1,167.40, on track for its biggest daily drop since October 2013.
The metal was heading for a fifth straight session of losses and the biggest weekly drop in a month.
On the local market, the Kwacha is expected to continue trading in a narrow range as the market appears to be in a matched position.
Near term trading range is expected to be between K6.950 and K7.050 against the US dollar.
A check by TIMES in Lusaka at Just in Time (JIT) Bureau de Change on Friday, the Kwacha was trading between K6.750 and K7.070 against the greenback while at Strust Bureau de Change the local unit was in the range of K6.850 and K7.000.
According to Zanaco Treasury Newsletter, the Kwacha posted gains against the dollar on Thursday, bolstered by reduced demand for the greenback.
The report said currency markets were relatively calmer on the day as corporate and interbank demand for the dollar appeared to thin out.
From an open of K6.985/7.005, 1.5 ngwee weaker than the previous day’s close, the Kwacha traded within a thinner band on the day with its weakest level being its open and its strongest level at K6.970/6.990 on the bid and offer respectively.
This is where it closed off for the day.