THE Kwacha on Friday came under pressure against the US dollar following the continued waning of supply from exporters.
According to Cavmont Bank Zambia daily market report, the local unit opened trading at K11.010 / K11.030 but was later seen being quoted at K11.060 / K11.080 on interbank.
In the absence of improved inflows, the local currency is likely to come under further pressure in the short term and could breach the K11.100/$1 psychological barrier.
The bank reported that the Kwacha closed at K11.010 / K11.030, K0.03 stronger than Thursday’s closing rate.
On money markets, Cavmont said commercial banks’ aggregate current account balance increased by K8.09 million to K886.18 million while the overnight borrowing and lending rate remained unchanged at 26.25percent. Total funds traded on Interbank were K702.00 million.
Meanwhile, Thursday’s Treasury Bill auction was under-subscribed by 64.49percent, with K287.67 million being bid for out of the K810.00 million which was being offered by the central bank. The yield rates on all tenors increased by an average of 5percent.
On the international scene the bank reported that he price of copper made a dramatic recovery and posted a rise of US$44.50 and the red metal was now selling at US$4,549.50 a tonne.
Similarly the price of gold rose by US$2.28 to push the selling price of the precious metal to US$1,099.22 an ounce.
The bank further reported that the price of Brent crude oil also marginally posted a gain of US$1.14 and the commodity was currently trading at US$34.33 a barrel
The Lusaka Stock Exchange (LuSE) All Share Index dropped by 1.13 percent and registered 5,656.66 points.