Kwacha weekly round up

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ZANACO banksays the kwacha is in the near term expected to trade at a narrow range of between
KR5.370 (K5,370) and KR5.420 (5,420) on the interbank for bid and offer respectively.The Bank says the kwacha opened trading on the interbank marginally stronger against the green back yesterday on Thursday at KR5.380 (K5,380) and KR5.400 (K5,400) on the bid and offer.

This was 1 ngwee stronger than Wednesdays closing level of KR5.390 and 5.410 for bid and offer.

This is according to the ZANACO bank’s treasury Newsletter for 22 March 2013.

The Bank explained that early morning dollar selling mainly by offshore players provided a slight reprieve for the Kwacha, which saw it touch a peak of KR5.365 (K5,365) and KR5.385 (K5,385).

“However, the gains were short lived as demand for the green back pushed the Kwacha back to the KR5.380 (K5,380) and KR5.400 (K5,400) level, where it eventually closed off trading”, the bank said.

Interbank trading on Monday was characterised by thin trading with minimal activity seen on the corporate
front. Intraday, the Kwacha marginally lost ground against the green-back.

Against Tuesday’s close of KR5.390 (K5,390) and KR5.410 (K5,410) the Kwacha opened and closed trading on Wednesday at KR5.395 KR5.415 but did temporarily touch a day’s trough of KR5.400 (K5,400)
and KR5.420 (K5,420)

The local unit was expected to continue to come under pressure as demand for the greenback remained robust.

Meanwhile, on the international front, the Sterling rose to a three-week high against the dollar and a five-week high versus the euro yesterday .

The pound rose to $1.5210, its highest since February 28, up 0.7 per cent on the day against the dollar.

The euro fell against the dollar on Thursday, after weaker than expected German business activity data fanned concerns about the health of the euro zone’s largest economy.

The euro dropped 0.3 per cent on the day to $1.28895, nearing the four-month low of $1.28435 hit on Tuesday.

And South African financial markets are expected to reopen today (Friday, March 22, 2013) after remaining closed for a national holiday on Thursday.

The rand last traded at 9.2550 to the dollar.