Kwacha gains as copper prices recover

The Kwacha strengthened slightly against the United States dollar on Friday as increased foreign currency inflows from corporate conversions and central bank support improved supply on the market.

Absa Bank Zambia said the dollar opened interbank trading at K19.625/K19.675 before the Kwacha gained 2.5 ngwee around midday to trade at K19.600/K19.650 on the bid and offer, respectively.

The local currency maintained those levels through to the close of trading.

Absa said the Kwacha’s near-term performance would largely depend on movements in foreign exchange demand and supply.

Read more: Zambian Kwacha extends gains for fourth session on month-end dollar supply

Meanwhile, copper prices recovered for a second consecutive session amid expectations that weaker-than-expected United States employment data could delay further tightening by the Federal Reserve, according to Access Bank Group.

The bank said the recovery had helped stabilise commodity markets following their sharpest weekly decline since March.

However, copper remained under pressure from concerns over weaker industrial activity in China, while the Golden Week holiday reduced liquidity across Asian markets.

Despite the short-term pressures, copper prices remained near record levels, supported by demand from data centres, renewable energy projects and electrification.

Access Bank said the earlier diversion of substantial copper volumes to the United States ahead of possible tariffs had also tightened availability in other markets.

The broader outlook for industrial metals remained mixed, with softer Chinese demand and high financing costs weighing against longer-term demand from energy-transition projects and artificial intelligence infrastructure.

Aluminium prices were little changed, while tin edged higher and iron ore futures declined to around $91 per tonne.

The bank also noted signs of improvement in shipments of sulphur and nitrogen fertilisers through the Strait of Hormuz, suggesting supply disruptions were easing.

However, flows remained below levels recorded a year earlier, with normalisation expected to take time.

Access Bank said continued logistical disruptions could leave mining and fertiliser production costs exposed to renewed supply pressures.

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