THE Kwacha maintained a very tight range against the dollar on Thursday after opening at K7.840 / K7.860 and was unmoved for most of the trading session.
According to Cavmont Bank Zambia daily market report, the local unit has been trading on the back foot, affected by low dollar supply on the market.
The bank also reports that the local currency closed at K7.845 / K7.865, -K0.005 weaker than its opening levels.
Meanwhile, the bank reports that the copper price has continued to drop with the latest fall of $61.00 making the red metal trade at $5,180 a tonne.
All commodity prices have registered a decline with Brent Crude Oil registering a drop of $0.97 and the commodity trading at $49.22 a barrel. Gold is currently trading at $1,086.12 an ounce after recording a decline of $49.22.
On the other hand, oil has fallen to a six-month low, and hopes of a quick rebound are fading as demand heads into an autumn swoon.
Brent crude tumbled below $50 on Monday for the first time since January while Gasoline fell the most in almost three years.
Head of oil-market research at Société Générale in New York Michael Wittner said; “We still have a lot of global oversupply, we’re getting close to the autumn, when demand for crude and products hits a seasonal low point, so it’s hard to see where the uplift is going to come from.”
Also, demand for gasoline typically eases after summer as the seasonal workforce shrinks and families stop vacationing.