Kwacha continues being worthless

Standard Bank says the Kwacha further lost
five (5) points on Thursday, March 14, 2013 to close at KR5.375
(K5,375) and KR5.395 (K5,395) for bid and offer respectively.

According to the banks daily brief update for March 15, 2013, the
local currency is expected to remain range bound for the trading day.
On thursday, the Kwacha fell to a one-week low against the dollar
closing 20 points weaker on the inter-bank at KR5.370 (K5,370) and
KR5.390 (K5,390) for bid and offer respectively.

In international news, the rand traded much stronger to the dollar to
close below 9.20, a shift from the extended losses it recorded against
the US dollar on Wednesday, March 13, 2013 weakening as much as one
(1) percent.

“The strength of the rand against the dollar comes on the back of
better than expected mining and manufacturing production data, ” the
bank said.

And copper firmed yesterday and is set to close higher for a second week,
after US jobs and inflation figures showed further signs of economic
recovery.

The bank however says prices were capped due to buyers being
discouraged by the high stockpiles in china.

Meanwhile, ZANACO reports that the kwacha opened interbank trading at
KR5.370 and KR5.395 on the bid and offer respectively and traded
around this level during the early morning session.

In its 15th March Newsletter, ZANACO says the Kwacha traded on the
back foot against the greenback on Thursday as trade upswing in the
dollar demand from interbank players saw the local unit break through
the KR5.400.

“With demand persisting in the market the local unit marginally
slipped against the dollar, later in the day to close trading at
KR5.380/5.400 after having touched a low of KR5.385/5.405, ” ZANACO
bank explained.

The bank further said the local unit is expected to continue trading
bearishly against the dollar. Barring any significant dollar inflows,
the Kwacha should trade between the ranges of KR5.370 and K5.430 on
the interbank.

 

Share this post