Kwacha trade steady

BUUMBA CHIMBULU writes @SunZambian THE Zambian Kwacha traded steady in Thursday’s trading session characterised by moderate activity. Opening the trade day at K20.070/21.120 per dollar, the local unit traded firm throughout the day as the rates remained unchanged until close of business. This is according to the Absa Bank Zambia daily market report. “We expect activity to remain subdued with the direction of the local unit being determined by how much dollar inflows the market will receive from corporates converting for their payroll obligations in the coming week. “With dollar appetite still unmet by dollar supply, the Kwacha is anticipated to continue trading on the back foot,” the Bank said. Elsewhere, South Africa’s rand stretched its latest winning streak to a fourth consecutive session on Thursday, climbing to a new 10-month best, while the stock market flirted with record highs as hopes for more stimulus in the U.S. boosted risk appetite. The rand was 0.94 percent firmer at 14.6775 per dollar, its firmest level since January 30, bringing gains for the week to nearly three percent in a worldwide high risk rally. On the money market, the liquidity levels in the market were little changed in Thursday’s trading session reducing to K2.82 billion from K2.88 billion. The volumes of funds traded on the interbank on the other hand significantly increased to K705.00 million from K450.00 million seen the previous day. The weighted overnight interbank rate was at 8.19 percent. Meanwhile, copper prices, often used as a gauge of global economic health, rose on Friday and were set for their seventh straight weekly gain on hopes that U.S. lawmakers would soon pass a new round of COVID-19 aid. Three-month copper on the London Metal Exchange rose 0.9 percent to US$7,988 a tonne and was up 0.9 percent for the week.