Kwacha gains to continue – Zanaco

THE Kwacha is expected to hold on to its gains with continued demand from local players, Zanaco says.
The bank says the Kwacha is expected to trade range bound between K5.4 and K5.45 for bid and offer respectively on the interbank.
“Today (Wednesday) we expect the local unit to hold on to its gains with support continuing to come from local players in demand for Kwacha,” the bank says in its daily treasury newsletter.
On Tuesday, the close of trade saw the Kwacha gain K0.005 against the United States dollar (US$) from its opening position.
The bank says interbank selling from local players continued to support the local units’ gain and during the course of trading, the Kwacha strengthened to a peak of K5.4 and K5.42 on the back of dollar selling in lieu of tax obligation due yesterday.
“Good buying interest at these levels reversed Kwacha gains made on the day. This saw the local unit closing trading at K5.42 and K5.44 from the day’s opening of K5.42 and K5.44,” the statement reads.
Similarly, Standard Chartered Bank says the Kwacha bulls prevailed on Tuesday as the currency advanced its gains against the greenback.
The bank says the local unit hit a session high of K5.4 and K5.25 against the dollar on the interbank, marking its two month highest peak.
“Markets closed around K5.41 and K5.44 at 16:00 hours Central African Time, 10 points firmer than its close on Monday,” the statement reads.
Meanwhile, Barclays Bank says, “The currency is expected to remain range bound although the recent strengthening of the Kwacha may prompt buyers of dollars off the fence which may result on the local unit shedding a few pips.”
The bank says trading on Tuesday kicked off with market players quoting the Kwacha at K5.42 and K5.44 to the dollar but the currency quickly extended gains witnessed in recent days as it tested the K5.4 psychological barrier by reaching a session summit of K5.4 and K5.42 against the greenback.