Decline in copper prices affect Zambian kwacha

The kwacha ZMK= is expected to come under pressure against the dollar next week due to a sharp decline in commodity prices and the firming of the U.S. currency, according to Reuters news agency.

The kwacha closed on Wednesday at 4,700 compared with 4,630 a week ago, a decline attributed to a fall in the price of copper, Zambia’s major export.

Standard Chartered’s local head of capital markets, Stanley Temele said he expected pressure on the kwacha to persist, with resistance seen at 4,750.

“A break above would pave the way for 4,800,” he said.

In the last week, copper has dropped from a high of $8,935 per tonne to $8,190 on Thursday.

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