By JAMES KUNDA –
THE Kwacha yesterday traded on a lower than expected note as the United States (US) dollar remained sluggish after falling by 1.5 per cent on Monday.
Meanwhile, Copper retreated from a two month high after concerns arose about the persisting weakness in top consumer China’s economy.
Oil however got a boost from the sluggish dollar rising by one per cent to trade at U$55.92 per barrel.
Interbank trading on Zanaco indicated that the local unit was trading at K7.6/K7.8 per dollar while at Cavmont Bank; the Kwacha was trading at K7.6/K7.7 against the greenback.
At Bullion Dollar Bureau de Change in Ndola’s Central business district, the currency held firm at K7.6 against the dollar.
The local unit is however expected to continue its resilience as the dollar could remain on a weak foot following the Federal Reserve’s cautious approach to lifting interest rates.
Three-month Copper on the London Metal Exchange (LME) dipped 0.2 per cent to $6,108 a tonne in official midday trading after earlier hitting $6,203.5, the highest since January 5.
LME prices pulled back after a private survey showed activity in China’s factory sector dipped to an 11-month low in March as new orders shrank, signaling persistent weakness in the world’s second-largest economy.
Oil got a boost as the dollar fell further, adding to its steepest weekly drop in three years.
Market watchers have been unwinding long dollar positions since the Federal Reserve indicated last week that a dollar interest rate hike is likely to come later rather than sooner.