Wednesday’s trading session saw the US dollar against the Zambian Kwacha currency pair open slightly weaker at K10.300 / K10.350.

Flows on both the left and right-hand side seemed to reach equilibrium as the Kwacha traded at K10.300 / K10.350 for the entire part of the trading session.

A further reduction in supply may see the kwacha become slightly constrained.

Current trends seem to indicate that the local unit is likely to oscillate between gains and losses, with demand and supply being its main drivers.

Meanwhile, according to Cavmont Bank Market report, the commercial banks’ aggregate current account decreased by K127.60million to K788.75 million while the overnight borrowing and lending rate decreased by 0.01% to 9.38%.

Total funds traded on Interbank was K242.70 million.

While on Tuesday, the Zambian Kwacha began the day trading at K10.280 / K10.330.

The local unit traded at these levels most of the day with very little trades being recorded from most market participants.

The pair went on to close at 10.300 / K10.350 and market activity was still somewhat flat as most players are still trading the pair cautiously.

It seems demand and supply continued being the major drivers on the currency pair in the short to medium term.