The Zambian Kwacha remained stable against the United States dollar on Friday, as foreign exchange supply matched demand on the market, according to ABSA Bank Zambia.
The bank said the local currency traded at K19.8500 and K19.9000 against the dollar on the interbank market throughout the trading session, maintaining its opening levels.
“The Kwacha was expected to trade within a narrow range in the near term, with movements largely dependent on the balance between foreign exchange supply and demand,” ABSA said.
On regional markets, the South African rand was on course to end the week stronger on Friday, supported by firmer gold prices, a weaker dollar and lower oil prices.
The rand traded at 16.5275 against the dollar at 0830 GMT, gaining about 0.4 per cent from its previous close and 0.7 per cent over the week, potentially ending a four-week losing streak.
Read more: Kwacha gains as copper prices recover
Meanwhile, oil prices fell on Monday amid expectations of increased Russian supplies following an announcement by United States President Donald Trump that Russia and Ukraine had agreed to halt attacks on each other’s energy facilities.
Brent crude futures declined by 1.47 per cent to US$103.18 a barrel, while United States West Texas Intermediate crude fell by 1.68 per cent to US$90.31 a barrel.
Gold prices edged higher on Monday as a weaker dollar and lower oil prices supported the precious metal, with investors awaiting key US inflation data for indications of the Federal Reserve’s next monetary policy move.
Spot gold rose 0.1 per cent to US$4,198.19 an ounce by 0432 GMT, after reaching its highest level since October 2 earlier in the session. US gold futures for December delivery also gained 0.1 per cent to US$4,221.80 an ounce.
KCM Trade Chief Market Analyst Tim Waterer said softer oil prices, following reports of an energy ceasefire between Russia and Ukraine, and a subdued dollar had created room for gold prices to rise at the start of the week.
Copper prices also rose on Monday, supported by supply concerns and optimism about demand.
Three-month copper on the London Metal Exchange gained 0.4 per cent to US$14,598 a tonne, while the most-traded copper contract on the Shanghai Futures Exchange rose 1.2 per cent to 110,910 yuan a tonne.
The gains followed renewed supply concerns after Chilean state-owned miner Codelco partially suspended operations at its El Teniente mine on Sunday following a landslide that killed two workers, according to the country’s mining regulator, SERNAGEOMIN.
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