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The Zambian kwacha on Tuesday fell for the first time in 18 trading sessions against the United States dollar, halting a remarkable rally that had delivered double-digit gains.
The currency dropped around 0.45 percent to close just above 19.600, trimming its overall advance during the streak to roughly 13 percent.
The decline, according to a market commentary by Access Bank Group, was driven by a resurgence in dollar demand as corporate and industrial firms resumed operations following the December holidays.
Read more: Zambian Kwacha closes 2025 firm as copper prices rally
Local market analysts say the uptick in dollar purchases, which began around January 12, could increase short-term volatility and potentially usher in a bearish trend for the Kwacha.
The Kwacha’s prior surge had been fuelled by multiple factors, including central bank measures restricting foreign-currency usage, pre-January 10 corporate exchanges of dollars into kwacha to meet tax obligations, and a sharp rise in global copper prices.
Zambia, Africa’s second-largest copper producer after the Democratic Republic of Congo, has seen its currency closely tied to the metal’s market performance, highlighting copper’s central role in supporting the kwacha’s recent strength.
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