Dollar drops on positive Covid-19 outlook

BUUMBA CHIMBULU writes THE dollar fell on Wednesday as stocks surged following encouraging updates on a potential treatment for the Covid-19, which has shut down businesses and battered the global economy. The greenback fell 0.26 percent against a basket of currencies to 99.62, above a two-week low of 99.44 hit on Tuesday, said Zambia Industrial Commercial Bank (ZICB). ZICB said globally, the dollar took a tumble following renewed interest in risky assets such as stocks by investors. The Kwacha is currently trading between K18.650 and K18.700 against the dollar. “The Australian dollar, which is seen as a proxy for global growth, jumped 0.57 percent to US$0.6527. It earlier reached US$0.6547, the highest since March 10, 2020,” ZICB said. On the Kwacha, ZICB indicated that the local unit remained unchanged from its previous day’s close of 18.650/18.700 with demand and supply being evenly matched.  Cavmont Bank Zambia said the currency pair maintained the status quo on Wednesday as it continued trading at K18.650 / K18.700 a second straight day, a level it had maintained until the close of business.  “Market activity was largely flat during the session, though a few sellers where seen converting their dollars to settle month-end obligations. “The Kwacha closed at 18.650/18.700 which was the day’s opening rate,” said the Bank in its daily market update. Elsewhere, the South African Rand continued its comeback against the dollar as it touched an intra-day high of $/K18.3197 during trading. The Sun