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The Zambian Kwacha halted its six-day losing streak on Tuesday, according to market commentary from Access Bank Group.
The commentary indicated that the Kwacha moved back below the 50-day simple moving average (SMA) of 19.6158 to close just above K19.400 per US dollar, marking an advance of more than one percent as global risk sentiment improved and the supply of hard currency increased.
However, Absa Bank Zambia, in a separate market commentary, said the local currency faced some pressure during the trading session as inflows were insufficient to sustain stronger appreciation against the greenback.
“At 08:30 a.m., commercial banks in Lusaka quoted the local unit’s interbank rate at K19.320/19.370 on the bid-offer before moving to K19.350/19.400, where it eventually closed the session,” the bank stated.
Read more: Kwacha weakens for fourth straight session against US dollar
Absa added that in the coming days the kwacha is expected to trade within a familiar range, largely influenced by market forces of supply and demand.
Meanwhile, global financial markets are increasingly pricing in a swift resolution to the conflict in Iran, with investors focusing on the possibility of disarmament rather than regime change.
Although the United States has intensified operations, including the destruction of 16 Iranian mine-laying vessels, analysts believe Washington is likely to avoid a ground invasion to prevent prolonged military engagement and domestic political fallout.
Such an approach is aimed at weakening Iran’s military capabilities and support for proxy groups, potentially contributing to greater regional stability over time.
Market analysts say a rapid conclusion to the conflict could limit disruptions to global energy supplies and economic activity. De-escalation could also boost investor confidence and support emerging-market currencies such as the South African rand.
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