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The Zambian kwacha closed Friday slightly weaker, extending Thursday’s bearish trend.
Bloomberg data showed the local currency fell by 0.41 percent, ending the week at just above 23.0735 per United States (US) dollar.
Analysts suggested that positive developments, including Friday’s credit ratings upgrade, could shift momentum back in favour of the Kwacha in the coming sessions, particularly as month-end flows settle.
Meanwhile, in the base metals market, copper surged to a record high on the London Metal Exchange (LME), climbing above US$11,290 a ton amid growing fears of a global supply crunch.
U.S Comex futures mirrored the rally, reflecting mounting concerns over tightening supply.
Read more: Kwacha opens week on strong footing as copper market shows signs of breakout
An analysis by the Access Bank Group attributed the price spike to unplanned mine disruptions, tougher smelter–miner negotiations, and sharply rising premiums highlighted at last week’s major copper conference in Shanghai.
Traders, including Mercuria, warned of significant copper deficits in 2026.
“Demand is being further strained by a rush to ship copper to the U.S. ahead of potential import tariffs, widening the gap between U.S. and LME prices, and potentially diverting more than 500,000 tons of supply into the U.S. early next year,” the report noted.
Copper had already risen nearly 30 percent this year, driven by its critical role in global electrification. Other base metals, including tin and aluminum, also advanced alongside the recent price surge.
In the foreign exchange markets, the U.S. dollar began December under pressure, as investors priced in a potential Federal Reserve rate cut and the likelihood of a dovish successor to Jerome Powell.
Market watchers would be closely monitoring the Kwacha and copper markets in the coming weeks, as global supply concerns and local economic developments continue to influence trading patterns.
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