The Zambian Kwacha traded on the back foot against the United States dollar as demand from large corporates and other importers remained high while supply was still subdued.
Commercial banks quoted the Kwacha at K25.200/25.250 per dollar during the trading session on Wednesday, according to the Absa bank Zambia daily market update.
The local currency during the trading session further lost ground by midday to close the trading session at K23.300/23.350 on the bid and offer respectively.
“Near term, the local unit is expected to trade range bound amidst swelling demand but may receive support from large corporates offloading to meet their local commitments,” Absa bank stated.
Meanwhile, the bank indicated that London Metal Exchange (LME) copper shed 0.2 percent to $8,564.50 a tonne while zinc declined 0.4 percent to US$2,562.50.
Lead also edged down 0.2 percent at US$2,078 with tin easing at 0.3 percent to UD$25,135, while aluminums rose 0.1 percent to UD$2,243.50.
“Oil prices fell and were on track to snap a three-day winning streak, as concerns over low demand following a surprise U.S. crude inventory build outweighed jitters over global trade disruptions due to tensions in the Middle East.
“Brent crude futures fell 22 cents, or 0.3%, to US$79.48 a barrel by 0303 GMT while U.S. West Texas Intermediate crude was at $74 a barrel, also down 22 cents or 0.3 percent,” the bank stated.
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