By 
Copper prices on the London Metal Exchange have slipped from a three-month high as traders anticipate increased supply ahead of the US imposing 50 percent tariffs on imports starting August 2, 2025.
Rising inventories, particularly in Asia and the US, have eased previous supply tightness, with global stockpiles up sharply, especially in new Hong Kong warehouses, limiting further price gains despite the looming tariffs, according to analysts from Access Bank group.
“Uncertainty remains over tariff specifics, including possible exemptions, contributing to copper’s roughly three percent decline this month,” the analysts said.
Moving over to the FX markets, the US dollar remained under pressure Thursday after losing ground overnight amid renewed concerns that President Trump might fire Federal Reserve Chair Jerome Powell.
Although President Donald Trump reportedly denied plans to remove Powell, he left the door open and criticized the Fed for not cutting interest rates, fueling investor fears over the central bank’s independence.
“Such a move could weaken the dollar’s safe-haven appeal and heighten market volatility, especially with inflation risks and the potential for negative real yields. The dollar index was little changed near 98.525 after a 0.3 percent drop on Wednesday,” according to the analysis.
Locally, the Zambian Kwacha halted its four-day winning streak against the US dollar on Wednesday.
According to Bloomberg data, the kwacha fell by 0.32 percent to close just below the 23.000 per dollar mark as foreign currency demand ticked higher.
The Kwacha’s trajectory in the remainder of the week will hinge on whether foreign currency inflows can keep pace with rising FX demand.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments