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The Zambian Kwacha remained under pressure yesterday, extending its losses against the United States dollar for a second consecutive session.
According to Bloomberg data, the local currency depreciated by 0.71 percent to close just above K19.30 per dollar, as sustained demand for hard currency from corporates and importers weighed on the market.
The latest movement adds to recent pressure on the Kwacha, with demand for foreign currency remaining a key factor influencing trading conditions.
“Market conditions could remain challenging for the local currency if demand for hard currency continues to increase, particularly from businesses requiring foreign exchange to meet import obligations and other external payments,” according to Bloomberg.
Read more: Kwacha strengthens against dollar despite third consecutive weekly loss
Meanwhile, the Zambian Kwacha also weakened against the South African rand, with the ZAR/ZMW cross rising by 0.65 percent to close just below 1.2080.
The cross failed to sustain an intraday break above the 1.2080 level, with most of its gains attributed to the weakness of the Kwacha.
The continued pressure on the local currency highlights the importance of foreign exchange demand and supply dynamics in determining the kwacha’s near-term performance.
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