Yesterday’s trading session saw the Kwacha continue its seemingly bullish run against the U.S dollar as it appreciated further to another intra-day high as it was selling eleven kwacha thirty ngwee from opening of eleven kwacha fifty ngwee.

Market activity was still flat from most players on the interbank as well as from corporates as they anticipated further gains in the local unit.

However, by afternoon, the local unit had reversed some of its gains and was being quoted at K11.450/ K11.500 following an increase in demand on the interbank.

The Zambian Kwacha depreciated about 19.9 percent against the US Dollars in the month of September.

The local currency has been relatively stable until September 7, this year depreciating by only 2.59 percent against the dollar.

The depreciation of the Kwacha was mainly attributed to increased demand for foreign exchange and the general strengthening of the US Dollar among other factors.

And according to Cavmont Bank, the kwacha is expected to remain range bound, though a change in the mismatch in demand and supply could stir the currency to move in either direction.

On Wednesday, the Kwacha continued its recovery against the U.S dollar as it appreciated further by 3.4% to an intra-day high of K11.500 / K11.550 from the day’s opening levels of K11.900 / K11.950.
Support for the local unit came from improved supply on the interbank.

Despite the positive movement, most corporates were cautious as they anticipated further gains in the local unit.

Current trends seem to indicate that the local unit is poised for further gains should supply continue to outweigh demand.