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The Zambian Kwacha showed signs of stabilization on Monday, ending an eight-day losing streak with little momentum for a significant rebound.
Bloomberg data indicated that the local currency closed just below K22.800 per US dollar, unable to maintain a brief intraday rise above that level.
Market participants cautioned that while the slide had paused for now, continued mid-month demand for hard currency could exert further downward pressure in the coming days.
Access Bank Group, in its latest market commentary, noted that the Kwacha’s steadiness “reflects a temporary pause rather than a trend reversal.
Persistent demand from corporates and importers, coupled with broader dollar strength, may constrain any near-term appreciation.”
On the global stage, the US dollar has regained strength, bolstered by carry trades that involve borrowing in low-yielding currencies like the Japanese yen or Swiss franc to invest in higher-yielding US assets.
The greenback has climbed roughly three percent from September lows, supported by easing market volatility and weaker returns in riskier investments.
“The dollar carry trade remains appealing as long as US economic indicators stay robust,” Access Bank added, cautioning that “unexpected shifts in short-term rates or Federal Reserve policy could quickly reverse these positions.”
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