THE Kwacha closed its trading session for November by 1.25 percent weaker compared to the beginning of the same month when it was trading at K10.000 / K10.050.
The local unit is currently trading in the range of K10.0257 and K10.2243 per dollar.
Most financial institutions indicated that the exchange rate market saw the performance of the local unit fluctuate owing to increased dollar supply.
The Kwacha, during November lost most of the gains earlier achieved, perhaps a suggestion that the move lower was exaggerated.
According to First National Bank (FNB) Zambia, in the interim, a balance seems to have been established around current levels within the exchange rate.
The bank in its daily newsletter suggested that the range of K10.000-K10.200 looked likely to hold for the remainder of the year, with most activity expected around the mid. month.
“Weekly resistance and support levels are expected to move in line with demand and supply. The cross between the rand and the local unit has continued to trade higher as the former enjoys strong gains against the greenback. We are seeing levels upwards of 0.730. Wednesday two-way closing stood at 0.7359/0.7404,” said the bank.
And Cavmont Bank Zambia said most of last week’s trading session saw the Kwacha fail to sustain its gains against the dollar following a dwindle in supply from sellers.
“The local unit began the day trading at K10.100 / K10.150 but was later seen trading at K10.125 / K10.175 by noon. In terms of market activity, most players have continued to trade the currency pair cautiously while anticipating a rally in the local unit,” said Cavmont Bank.
On the money market, commercial banks’ aggregate current account balance increased by K74.86 million to K2,274.58 million while the overnight borrowing and lending rate decreased by 0.05 percent to 10.45 percent.
Total funds therefore traded on Interbank were K147.20 million.
Meanwhile, the dollar held steady on Thursday but was set for a monthly loss against a basket of currencies as investors cautiously watched progress on United States tax reform legislation, while sterling stood tall on optimism a Brexit accord would be reached.