• Local Currency was firm against the Dollar on Wednesday.
• It opened the market at K21.2950/21.345 per dollar.
• The local unit is likely to continue posting minor losses in the near term.

Absa Bank Zambia observes that the Kwacha was firm against the US dollar yesterday amid expectations it could weaken on the back of a continued increase in demand from importers and high money market liquidity in the local markets.
In its latest Market update report, the bank said the local unit opened the market trading at K21.2950/21.345 from a previous day’s close of K21.290/21.340 per Dollar.
“With demand still weighing heavy, the local unit is likely to continue posting minor losses in the near term.”
“The liquidity levels in the market in yesterday’s trading session increased from K1, 347.92 million seen the previous day to K1, 340 million. The volumes of funds traded on the interbank reduced from yesterday’s record of K840.00 million to K560.00 million,” Absa Bank said.

Meanwhile, the bank disclosed that Copper and other industrial metals prices sagged on Monday as a more infectious strain of the coronavirus threatened to wreak further damage on the global economy and investors ditched riskier assets.
It said benchmark copper on the London Metal Exchange (LME) was 1.7% lower at $7,853 a tonne at 17:00 GMT.
“Gold rose to a two-week high on Thursday as the dollar eased on hopes of further stimulus under the Joe Biden administration, although bullion’s gains were limited by some profit booking.”
Spot gold was up 0.1% at $1,872.25 per ounce by 03:08 GMT, after hitting its highest since January 8 at $1,872.35 earlier in the session. Bullion had gained 1.7% on Wednesday,” it added.