Kwacha weakens

SUN BUSINESS writes IN THE absence of healthy dollar in-flows, the Kwacha is likely to continue trading on the back foot against the greenback, a financial market player has predicted. Absa Bank Zambia Plc reports that in yesterday’s trading session the Kwacha was under pressure against the United States dollar and was seen adding on to its previous day’s losses due to increased demand from oil and commodities importers making end month payments. “At market open, commercial banks quoted the Kwacha at K19.40 and K19.450 to the dollar and gradually lost ground in both the morning and afternoon sessions to close the day 15 ngwee weaker at K19.55 and K19.600 on the bid and offer respectively,” the bank says in its latest market report issued today. And in other currencies, the Zambia Industrial Commercial Bank in its latest newsletter reports that the South Africa’s rand softened early yesterday, giving back some of its big gains from the end of last week that was spurred by a significantly weaker dollar, as investors awaited details of the ruling African National Congress’s (ANC) weekend meeting. At 06:50 Greenwich Mean Time (GMT) the rand was 0.14 percentage point weaker at 16.6175 per dollar compared to its close of 16.5950 last week. The currency rallied more than two percent at the end of last week to its firmest in nearly a month, crossing the 17.00 threshold as investor bets that lending rates in the United States would stay low for longer suppressed demand for greenbacks. The rand’s rally was, however ,restrained by intensified infighting within the ruling ANC as the party headed into a weekend meeting with opposing factions lashing out at each other over corruption, leading to speculation over possible cabinet changes. The Sun