THE kwacha continued to depreciate against the US dollar on Monday following increased demand for the greenback on interbank, a Cavmont Market report reveals.
According to the report, the local unit touched an intra-day low of K12.2500/K12.300 from the day’s opening levels of K11.900/K11.950.
“Most corporates were still cautious, especially on the buy side as they anticipated a rally in the local unit from the expected inflows as companies convert to meet local tax and statutory obligations due this week. In the absence of improved inflows, the local unit may come under pressure to touch previous resistance levels last seen a week
ago,” the report stated.
The report further stated that commercial banks’ aggregate current account decreased by K1,435.82 to K548.31 million while the overnight borrowing and lending rate increased by 0.05 per cent to 9.66 per cent.
“Total funds traded on Interbank was K415 million,” the Cavmont Market report revealed.