THE Kwacha has continued to trade within the K10-levels although reduced United States dollar supply is likely to weigh down the local unit, a financial market player says.
Zanaco Bank says the Kwacha, which was unchanged against the US dollar on Tuesday in a quiet trading day, was yesterday expected to trade within the levels as reduced activity continues to characterise the market.
“Thin market activity is likely to keep the currency range-bound although reduced dollar supply may weigh on the Kwacha in the near term.
“On Tuesday, the day opened at K10.35 and K10.37 unmoved from its previous day’s close, the local unit traded flat on the day with little movement seen in the currency pair. It eventually closed at its opening levels with the markets having seen little activity from corporates and interbank players,” the bank says in its daily treasury.
A check at bureaux de change in Lusaka revealed that the local unit is still within the K10-levels.
At Golden Coin Bureau the Kwacha traded at K10.30 and K10.50 on bid and offer respectively while the Kwacha-dollar pair stood at K10 and K10.60 at C & A Bureau.
The Kwacha was pegged at K10.40 and K10.56 against the dollar at FX Africa Bureau.
On the regional front, the South African rand briefly touched an all-time low against the greenback despite broad-based dollar weakness on Tuesday, with traders citing nervousness ahead of credit ratings reviews on Friday which could see a downgrade for South Africa.
The rand briefly touched R14.4950 against the dollar, its weakest on record according to Thomson Reuters data, before pulling back to R14.4570 by mid-afternoon, close to where it ended Monday trade.
The Kenyan shilling traded at 102 against the dollar, unchanged from Tuesday.