THE price opf copper has continued to rise on international markets and on Monday it rose by $149.
to trade at $6,068.50 a tonne, says Cavmont Bank Zambia daily market report.
And the Wall Street Journal reports that Copper prices rose to close at a 10-week high, as investors reeled back bets against the metal amid a weaker dollar and rising oil prices.
As copper prices rose, some investors who had wagered on lower prices were forced to cut their losses and buy back copper futures, a phenomenon known as a short squeeze, investors said.
The paper further reports that prices also received a boost from a sharp rise in the price of oil.
“The U.S. benchmark for crude jumped 4 percent to $45.72 a barrel. Copper and oil are frequently traded as major components part of a diversified basket of raw materials, and the performance of one commodity often has a bearing on the other.
“Everything was quite oversold before the Fed meeting, and now we are seeing some fresh buying coming in as the dollar is knocked back,” said Edward Meir, a strategist at INTL FCStone.
And Cavmont reports that the price of crude oil similarly shot up by$0.89 and is now trading at $55.32 a barrel while that of gold too soured by $9.80 and is now selling at $ 1,182.40 an ounce.
On the local scene Cavmont Bank reports that on Monday,the Kwacha opened at K7.630/K7.650 and touched an intraday high of K7.500/ K7.520 on Inter-bank.
The local currency’s strength was in line with a basket of emerging market currencies which have generally strengthened against the greenback.
The Kwacha closed at K7.660 / K7.680 – K0.065 stronger than Friday’s trading session.
Commercial banks’ aggregate current account balance decreased by K435.15 million to K1,160.10 million while the overnight lending rate increased by 0.06 percentage points to 12.77 percent.
Total funds traded on Interbank were K183 million.