Kwacha weighs down

THE Kwacha extended its losses against the dollar in yesterday’s trading session for a third straight day this week weighed down by a surge in dollar demand mainly from large corporates across different sectors, Barclays Bank daily report says.

According to the report, the market opened at K13.85/13.90 per dollar and closed the day 10 ngwee lower at K13.95/14.00 with demand outstripping supply throughout the day.

“The local unit is likely to continue trading on the defensive in the absence of healthy dollar inflow in the short term,” the report said.

The report says the liquidity levels increased from K1628.56 to K1,858.94.

“The volumes of funds traded on the interbank lowered from K604.00 million to K489.00, similarly the overnight interbank rate pushed up from 10.70 percent to 10.78 percent,” the report said.

Oil prices, the report said, dipped as prospects for a trade deal between the United States and China dimmed, weighing on the outlook for the global economy and energy demand.

“Brent crude futures edged down 16 cents, or 0.3 percent, to $61.90 a barrel, while U.S. West Texas Intermediate crude was at $56.65, down 15 cents or 0.3 percent,” the report said.

Meanwhile, gold gained on Wednesday as US President Donald Trump’s speech on the trade ties with China diminished optimism for a deal and dented risk appetite.

“Spot gold rose 0.4 percent to $1,462.03 per ounce. U.S. gold futures settled up 0.7 percent at $1,463.30,” the report said.

The report said the price of copper and other base metals slipped after US President Donald Trump threatened more tariffs on China, disappointing investors keen for a trade deal.

“Three-month copper on the London Metal Exchange (LME) shed 0.6 percent to $5,835 a tonne in final open-outcry trading, the lowest since Nov. 1. It was down for a fourth straight session,” the report says.