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Consolidation characterised trading on the foreign exchange market as the Zambian Kwacha closed largely unchanged on Friday.
Data from Bloomberg shows the local unit held steady against the United States dollar at just below K18.800.
Despite the flat close, the Kwacha emerged as Africa’s best-performing currency in February, gaining more than four percent and marking its third consecutive month of appreciation.
According to Bloomberg, the sustained gains were supported by strong copper export receipts and policy measures aimed at reducing dollarisation in the domestic market.
Read more: Copper prices on course for second weekly gain, as Kwacha extends rally
In regional markets, the USD–ZAR traded around 16.0200 on Monday morning after slipping below the 16.0000 threshold, buoyed by renewed demand for the dollar as investors sought safe-haven assets.
Market commentary from Access Bank noted that the US Dollar Index has climbed to levels last seen in late January, driven by escalating tensions in the Middle East and persistent concerns over tariff policies.
“The rand, although supported by gold prices rallying towards US$5,365 per ounce, remains under pressure against the greenback and other major currencies, with cross rates such as EUR–ZAR and GBP–ZAR reflecting similar weakness,” the bank stated.
On the broader FX market, the dollar trimmed earlier gains following reports that Iranian officials were seeking to resume nuclear negotiations with the US.
The Bloomberg Dollar Spot Index rose 0.2 percent—down from an intraday peak of 0.4 percent—after reports that Donald Trump was to open to talks with Iran’s new leadership and may consider easing sanctions if discussions are constructive.
Iranian security official Ali Larijani is said to have advanced the proposal for renewed engagement through Omani mediators, helping to stabilise market sentiment.
However, analysts caution that the dollar’s trajectory will ultimately hinge on developments as US markets fully reopen and as geopolitical rhetoric continues to evolve.
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