Market exchange rates
Lusaka, May 8, ZANIS ——-ZANACO bank says the kwacha is in the near term expected to continue trading within the KR5.28 (K5, 280) and KR5.35 (K5, 350) range against the dollar with a marginal depreciation on the day.
The local unit opened Tuesday unchanged from Monday’s closing level of KR5.30 (K5, 300) and KR5.32 (K5, 320) on the bid and offer respectively.
According to the bank’s daily treasury newsletter for 8th May 2013, the local unit marginally lost ground against the dollar to trade largely at KR5.35 (K5,305) and KR5.35 (K5,325) buying and selling respectively.
The newsletter indicated that the local currency closed the day at this level, with demand slightly stronger than supply.
A ZANACO expert Austin Chijikwa in a phone interview with ZANIS confirmed that the expected marginal depreciation is because of demand and supply factors that have seen slow selling of the US dollar and market happenings from previous sessions.
And Standard Chartered Bank in its daily brief for 8th May 2013 says the rebased Kwacha’s activity on the interbank continued to be balanced and closed on the same levels where it opened at KR5.29 (K5,290) and (K5.330) for bid and offer respectively.
Meanwhile, the sterling edged down from near three-month high against the euro on Tuesday after better-than-expected German industrial orders data boosted the single currency.
The sterling is another term for the pound, the currency for Britain.
“The pound was steady against the dollar at $1.5536 and stalled just shy of $1.56 on Monday and resistance at $1.5606, the 50 per cent retracement of its slide between January and March, and at $1.5607, the three -month peak hit on May 1.” The newsletter said.
The Euro held steady against the dollar but fared well against other major European currencies on Tuesday as surprisingly strong German data and a solid sale of Portuguese bonds allayed concerns about the euro zone economy and its debt burden.
The Euro hit a session high of $1.3131 after the German data, but last traded flat at $1.3074.
South Africa’s rand was on a weaker footing on Tuesday at R9.0128/$ at 08:16, 0.2% weaker than Monday’s New York close, as the country’s economic downturn heightens expectations of an interest rate cut.
On the metal market, Copper failed to sustain a three-week high on Tuesday as investors’ nervously awaited economic data this week from top metals consumer China and due to persistent concern about global metals demand.
Three-month copper on the London Metal Exchange (LME) touched a session peak of $7,374 a tonne on Tuesday, the highest in three weeks.
Gold eased on Tuesday selling at $1.25 an ounce to $1,467.64, losing its shine as an alternative investment as stock markets rallied.
This was also due to holdings on bullion exchange-traded funds slipping to their lowest in more than three (3) years.
The Metal hit a near three-week high of $1,487.80 on Friday on safe-haven buying spurred by a cut in interest rates by the European Central Bank.
However, Brent crude oil fell more than $1 on Tuesday as worries about market fundamentals curbed an early rise that had brought the price close to $106 a barrel on strong German data and concern about tension in the Middle East.
Brent crude fell $1.06 to settle at $104.40 a barrel reaching $105.94 during the session, its highest since April 11.