THE kwacha lost most of the gains earlier achieved, perhaps a suggestion that the move lower was exaggerated, FNB Zambia has said.
In its market update on last week’s trading on the Foreign Exchange market, FNB stated that the range of K10 to K10.20 is expected to hold for the remainder of this year.
“…The kwacha lost most of the gains earlier achieved, perhaps a suggestion that the move lower was exaggerated. In the interim, a balance seems to have been established around current levels. The range of 10.000 – 10.200 looks likely to hold for the remainder of the year, with most activity expected around the mid. Weekly resistance and support levels are expected to move in line with demand and supply,” FNB Zambia stated.
It added that market liquidity improved further last week, with over K2 billion in circulation.
“The tight conditions experienced by the interbank market have markedly eased,” FNB Zambia stated. “The bond market is not seeing much action as we draw closer to the end of the year.”