Kwacha Improves- Recovers to K9.71.
THE kwacha has continued to gain against major currencies, trading at an average K9.70 against the US dollar, according to financial market players.
The local unit strengthened yesterday to trade at between K9.65 and K9.84 per US dollar for bid and offer respectively, as supply of dollars continued to flood the financial market, according to FNB Zambia.
“With a year-to-date spot return of 8.59 per cent, the kwacha is topping the charts among most African currencies after making massive gains from USD/ZMW11.380 at the end of March to a close of K9.850 yesterday [Thursday],” FNB stated in a Treasury newsletter.
“The big question is where the rate is heading. With the market flooded with dollar liquidity, the possibility of further kwacha appreciation is very high. We see support around K9.60 and resistance at K9.99.”
And Cavmont observed that the local currency’s performance had been boosted by healthy inflows of foreign exchange on the financial market on Thursday.
“The kwacha continued its appreciation against the US dollar on Thursday following continued healthy inflows from major exporters and on the interbank. The local currency recorded a positive movement of 2.11 per cent from the day’s opening level of K10.42/K10.44. The currency pair has performed relatively well compared to its regional peer, the South African rand, which has traded on the back foot for most of this week,” stated Cavmont. And according to a Zanaco treasury update, the local currency was trading at K9.62 and K9.77 by lunch time yesterday.
Source: The Post