THE kwacha rose against the US dollar on Friday to end three consecutive weeks of decline against the foreign currency.
According to the Bank of Zambia, there had been a slowdown in revenues from the mines causing the depreciation of the local currency.
Zanaco market experts stated that the local currency opened trading at KR5.380/5.400 unchanged from the previous day's close.
The local unit continued to ride on momentum built up in the last two trading sessions as it rose to KR5.360/5.380.
The move was supported by strong interbank selling of the greenback outweighing demand on the day. The kwacha last traded at KR5.365/5.385, up KR0.015 for the day and KR0.04 on a week-on-week basis.
In the short term the kwacha is expected to remain bullish to flat and is likely to trade within a KR5.320 to KR5.420 range.
The market experienced a drop in liquidity levels, closing the week at KR1 069.2 million from KR1 233.3 million.
The volume of funds traded significantly dropped to KR133.0 million from KR222.0 million and the weighted average interbank lending rate was posted at 9.67 per cent from 9.4 per cent.
With the prevailing high liquidity levels in the market, the overnight rate is expected to trend downwards in the short term.
And copper rose on Friday, helped by bargain hunting and consumer buying in China, and as concern over the impact of the potential bankruptcy of Cyprus eased after it agreed with Greece on the takeover of Greek units of Cypriot banks.
Three-month copper on the London Metal Exchange closed at US$7,655 a tonne from US$7,580 at the close on Thursday, reversing losses from the previous session, when it fell half a per cent.
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