FRIDAY’S trading session saw the Kwacha swing between gains and losses as a result of a mismatch in demand and supply.
According to Cavmont Bank Zambia market daily report the local unit opened at K12.570 / K12.590 and appreciated to a high of K12.525 / 12.545 on interbank before reverting back to its opening levels.
On the other hand, activity from most corporates was mostly subdued as most of them have continued trading cautiously.
Current trends seem to indicate that the currency pair will likely be driven by demand and supply factors in the short term.
On Local money markets, the bank reported that Commercial banks’ aggregate current account balance increased by K132.55 million to K1,398.95 million while the overnight borrowing and lending rate decreased by 0.08percent to 14.70percent.
Total funds traded on Interbank were K328.50 million.
Meanwhile, Thursday’s Treasury Bill auction was under-subscribed by 68.47%, with K283.73 million being bid for out of the K900 million which was being offered.
Yield rates remained unchanged compared to the previous auction.
On the international scene the price of copper dropped by US$16.00 and the red metal was currently selling at$5,134.00 a tonne.
Similarly the price of gold fell by US$6.45 and the precious metal was presently trading at$1,148.90 an ounce.
The bank further reported that the price Brent crude oil marginally dropped by $0.44 and commodity was now selling at$48.48 a barrel.
The bank reported that the Lusaka stock Exchange (LuSE) all Share Index remained unchanged at 5,772.35 points.