THE local currency got support on Tuesday from increased inﬂows midmonth conversions to meet tax obligations started and was K0.09 stronger.
According to Cavmont Bank Zambia daily market report, the Kwacha was by mid afternoon trading below the K7.8 levels where it has been trading for the past week.
Demand and supply factors continuesd to determine the direction of the currency pair.
The Kwacha closed at K7.750/K7.770–K0.09 stronger than the previous day’s closing level.
On local money markets, the bank says commercial banks’ aggregate current account balance increased further by K82.39 million to K774.88 million while the overnight borrowing and lending rate declined by 0.03 percent tom 14.74 percent.
Total funds traded on Interbank were K330.50million.
On international metal market the price of copper fell again by$46.00 and the red metal is now selling at$5,127.00 a tonne.
Elsewhere there are reports Copper prices have continued to extend losses,falling to the lowest in six years as high volatility in the Chinese stock-market reinforced worries of a dropping demand from the nation, the world’s top metals consumer.
According to Mining.com, benchmark copper on the London Metal Exchange was falling over 5percent to its lowest point since Jan. 30 at $5,289.50 a tonne.
On the Comex in New York, futures for September delivery lost 5.9percent to $2.389 a pound. So far this year, the industrial metal has lost about 15 percent of its value.
Beijing has suspended new stock sales and established a market-stabilization fund aimed at fighting off the worst equities selloff in years, amid growing concerns that the stock-market rout could be spreading to the other parts of the economy.
A series of stimulus measures taken in the last several months has failed to pause China’s slowdown, triggering concerns that the country’s demand for copper may continue to weaken.
The bank reports that the price of gold on the other hand posted an increase of $5,127.00 and the precious metal is now trading at$5,127.00 an ounce.
Cavmont further reports that the price of Brent crude oil recorded a marginal rise of US$0.44 and the commodity is selling at $49.24 a barrel.
The price index on the Lusaka Stock Exchange (LuSE) shot up by0.06 percent to post an increase of 5,843.32.