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The Zambian kwacha recovered against the United States dollar on Thursday, ending a three-day losing streak as improved foreign exchange supply offered some support to the local currency.
According to Bloomberg data, the kwacha gained 0.36 percent to close just below K20.500 per dollar.
The recovery, however, was not enough to reverse its weekly losses, as demand for foreign currency continued to outstrip available supply.
Meanwhile, copper prices edged up by about 0.7 percent to US$13,680 per tonne on Friday, recovering slightly from a sharp sell-off in the previous session.
Read more: Kwacha rebounds after two-day losing streak but remains under monthly pressure
Despite the rebound, the metal remained on course for a weekly decline amid concerns about the sustainability of artificial intelligence-related investments and their implications for future copper demand.
Copper briefly fell to a four-month low of US$13,515 per tonne as uncertainty surrounding Nvidia and the wider technology sector raised questions about future investment in data centres, which are expected to become an increasingly important source of copper demand.
A stronger US dollar and uncertainty over US policy following the midterm elections also weighed on market sentiment.
However, tight physical availability in China provided some support to prices.
The Yangshan copper import premium rose to a record US$240 per tonne, pointing to strong demand for imported metal.
In contrast, domestic Chinese premiums retreated sharply from recent highs, suggesting that immediate buying interest in the world’s largest copper consumer could be easing.
Trading across other base metals was mixed, with aluminium and nickel recording marginal declines, while zinc, lead and tin posted gains as the broader metals complex staged a partial recovery from the previous session’s losses.
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