Absa Bank says the local unit was slightly changed in yesterday’s trading session as the factors of demand and supply continue to dictate the direction of the US Dollar and Zambian Kwacha currency pair, with only a little of foreign currency supply in sight.
In its latest market update report, the Bank stated that the local unit opened the day at Twenty Kwacha Ten Ngwee and Twenty One Kwacha Fifteen Ngwee per dollar.
It said the currency traded flat in the morning but lost some ground by midday, trading at Twenty One Kwacha Eleven Ngwee and Twenty One Kwacha Sixteen Ngwee until closure.
“Opening the day at K21.100/21.150 per dollar, the local unit traded flat in the morning but lost some ground by midday, trading at K21.11/21.16 until closure. Near term, we anticipate the local unit to post further losses as market players buy Forex while dollar sellers remain thin,” Absa said.
Meanwhile, the financial institution disclosed that liquidity levels in the market took a turn in yesterday’s session increasing to K3, 508.40 Million from K2, 690.39 Million as market players prepared to participate in today’s Bond Auction.
It said the volumes of funds traded on the interbank on the other hand reduced to K474.00 Million from K740.00 Million while the weighted overnight interbank rate jumped up further to 8.22% from 8.19%.