Kwacha gains 2% on Fed bets

ZAMBIA’S kwacha firmed against the dollar by more than 2 percent yesterday as emerging markets came into favour on bets that the US Federal Reserve would delay interestrate hikes, and as commodities bounced back. “Emerging market currencies seem to be making a comeback. Copper is trading above $5 200 (R70 748) a ton and most currencies have rallied on continued bets that the Fed will delay the expected rate hike to 2016,” said Zambia’s unit of South Africa’s First National Bank. Zambia’s central bank said it had introduced a new rule allowing it to trade above its own limit of $1 million per transaction with commercial banks to enhance stability. It also announced measures to improve transparency in the foreign exchange market. – Reuters