The weakest rate reached at close of trading on Friday was K12.60 against the dollar, with sentiments continuing to look gloomy for the local currency.
With this, most corporates have kept their dollars in anticipation of a much weaker kwacha to increase on their returns.
“Concurrently, as the rand continues to gain against the US dollar, the ripple effect on ZAR/ZMW has been a breach of 0.900, which has had a negative bearing on importers who generally purchase rands for their business.
We anticipate that the market will continue to trade within these levels in the absence of dollar supply, with subdued market activity, given the high USD/ZMW rate. We are of the view that importers will elect to hold on to the kwacha, hoping for better rates. Nonetheless, USD/ZMW seems toppish at these levels. We could see some profit-taking, which will give the local unit the much-needed support,” market experts at FNB have stated.