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The Zambian Kwacha extended its rally on Friday, posting additional gains against the United States dollar as demand for the greenback softened, supported by steady foreign currency inflows from corporate and offshore market players.
According to a market update from Absa Bank, the USD/ZMW interbank rate opened at K18.300/18.350 at 08:30 before firming to K18.200/18.250 by midday.
The local currency sustained its bullish momentum throughout the session, closing stronger at K18.150/18.200.
“The currency maintained its upward trajectory during the trading day, with supply and demand dynamics continuing to shape market movements,” the bank noted, adding that these factors will remain central in determining near-term trading ranges.
Read more: Strong foreign exchange inflows lift Kwacha, outlook remains positive —ABSA Bank report
Data from Bloomberg also showed the Kwacha extending gains for a second straight session.
The currency appreciated by about 1.64 percent to close just below K18.400 per dollar.
Bloomberg attributed the positive outlook to increased hard-currency sales for tax obligations, higher copper export earnings, and central bank measures limiting the use of foreign currency.
Meanwhile, copper prices in London edged lower on Friday amid thin trading volumes as China observed a public holiday.
Trading on the Shanghai Futures Exchange remains suspended for the Lunar New Year celebrations, which began on February 15, with activity set to resume on February 24.
Three-month benchmark copper on the London Metal Exchange slipped 0.5 percent to US$12,810 per tonne, after touching a one-week low earlier in the session.
Analysts said copper prices could test support at US$12,578 per metric tonne, warning that a break below this level may open the door to further declines in the US$11,545–US$12,116 range.
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