THE kwacha on Friday touched its highest level in almost three months as it breached the K5.300 psychological barrier for the first time since late January.
The local unit's bullish posture was bolstered by dollar supply as key market stakeholders sold dollars to meet local currency tax obligations.
Barclays Bank Zambia plc said yesterday that the opening bell saw market traders quoting the greenback at K5.350/K5.370 on the bid and offer respectively on Friday.
By mid-morning, however, the kwacha made impressive strides as it quickly brushed aside the preceding month-to-date high set the day before and climbed to K5.275/K5.295 to the dollar, a level not seen since the end of January when it traded at K5.2900, the bank said.
"The stronger kwacha seemed to inspire dollar buyers off the fence and a spurt in demand for the greenback saw the kwacha change course later on as it closed the day at K5.300/K5.320 to the dollar," added Barclays Bank market experts.
The kwacha lately has been appreciating, climbing to a one-month high against the dollar last Wednesday.
Experts last week projected a strong local currency this week on the back of some increased dollar selling by firms ahead of corporate tax payments due this week.
The local currency was buying at K5.299 and selling at K5.3192 a dollar by midmorning yesterday.
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