Kwacha, Copper On The Rise.
COPPER price climbed to US$4,809.50 on Wednesday on the global market after a two-week drop, as the Kwacha continued its ascent for a record 16-day rally against the United States (US) dollar.
Three-month copper on the London Metal Exchange (LME) had jumped 0.9 percentage point to US$4,809.50 by 0800 GMT, adding to 2.2 percent gains from the previous session.
Reuters reports that Zambia’s commodity export earner increased on both the London and Shanghai metal exchange platform.
“London copper rose to the highest in almost two weeks on Wednesday and Shanghai metals surged as strong Chinese copper imports in March fanned hopes that the economy in the world’s biggest metals user is improving,” the reports.
On the local currency market, the Kwacha in the short-term outlook continues to favour with trading range anticipated to be between K9.10 and K9.40, financial market players say.
In its daily treasury newsletter issued yesterday, Zanaco says the Kwacha opened trading at K9.615/K9.635 against the dollar and was heavily bid on Wednesday.
“Mid-month tax demand continued to prop the currency whilst market players cutting losses on their long dollar positions provided further support. This saw the Kwacha appreciate to K9.29/ K9.31, its highest closing level since September 3, 2015,” the bank notes.
Cavmont Bank also notes that the Kwacha on the day showed little or no signs of halting its bullish performance against the US dollar as it gained by 3.73 percent.
The local unit opened at K9.65 / K9.67 in early trade.
However by midday, the local currency touched an intra-day high of K9.29/K9.31.
The Kwacha closed at K9.29 / K9.31, K0.375 stronger than the previous day’s closing level of K9.665 / K9.685.
In bureaus de change, the local unit was trading in the range of K9.40 and K9.60.
Source: Zambia Daily Mail