THE kwacha has continued making marginal rebounds against the US dollar hitting an intra-day high of K12.050/K12.100 on the interbank. But First National Bank yesterday noted that market participants were likely to remain cautious, especially on the corporate buy side as they anticipated the kwacha to make further gains.
In its daily Market Report, the FNB stated that the gain was largely driven by tight liquidity in the money markets coupled with increased inflows from exporters.
“The local unit made a rebound against the US dollar on Tuesday as it touched an intra-day high of K12.050/K12.100 on the interbank from the day’s opening levels of K12.150/K12.200,” the FNB stated.
The bank stated that should the tight liquidity in the money markets continue, the kwacha was likely to make further gains against the US dollar in the short run. It also stated that commercial banks’ aggregate current account decreased by K170.32 million to K704.48 million while overnight borrowing and lending rate decreased by 0.04 to 9.61 per cent.
“Total funds traded on Interbank were K362.50 million,” stated the FNB.