Kwacha fluctuates

OFF-SHORE participation in the local bond auction had little impact on the Kwacha as it performed below the expected levels.

On Friday, all eyes were on the bond auction which most players anticipated would give a boost to the Kwacha should there be strong foreign participation from offshore investors.

However, the local bond auction had very little impact because offshore participation was hardly seen, as was anticipated by most buyers.

Cavmont Bank Zambia daily market report indicated that the Kwacha on Friday made a further downward movement against the dollar as interbank demand grew stronger from the previous day.

“The local unit began the day trading at K10.100 / K10.150. However, by noon, it was seen trading at K10.150 / K10.200 on the bid and offer respectively,” the bank said.

On Thursday last week, the Kwacha failed to sustain its gains from Wednesday’s trading session after supply from corporate sellers waned which was outstripped by demand from importers who sought to take advantage of the Kwacha strength.

The local unit touched an intra-day low of K10.080 / K10.130 from the day's opening levels of K9.980 / K10.030 in the morning.

The financial market however anticipated that in the absence of improved flows, the local unit could touch new lows above the $/ K10.200 mark in the near term.