THE Kwacha slipped further against the US dollar on Tuesday, breaching the K9.900/$1 mark following increased demand from importers which has continued to outweigh supply.
According to Cavmont Bank Zambia daily market report, that slip was despite the central bank reducing market liquidity through Open Market Operations (OMO).
The local unit opened the day at K9.650 /K9.700, but was later being quoted at K9.800/K9.850 by midday.
The Kwacha closed at K9.900/K9.950, inching closer to the K10.000/$1 psychological barrier.
On the local money market, the bank reported that commercial banks’ aggregate current account balance decreased by K158.92 million to K807.98 million while the overnight borrowing and lending rate remained decreased by 0.08 percent to 18.02 percent.
Total funds traded on Interbank were K292.50 million.
The central bank continued conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K300 million.
The Lusaka Stock Exchange (LuSE) All Share Index remained unchanged at 4,718.94 points.
On the international scene Cavmont reported that the price of copper was still on its souring slope and on Tuesday posted a drop of US$35.50.
With that drop the price of the red metal on the London Metal Exchange (LME) was presently standing at US$4,883.00 a tonne.
The same fate was suffered by Brent crude oil whose price slipped by US$0.70 and the commodity was selling at US$44.22 a barrel.
But the price of gold marginally recovered and posted a gain of US$8.10 to push the selling price of the precious metal to US$1,321.94 an ounce.