Tuesday,19th April 2011
The USD/ZMK pair rallied briefly to test the 4765 level before settling back to the 4695-4720 range during yesterday’s session.
According Standard Chartered Banks daily brief, the move was attributed to demand from the telecoms sector; however due to significant Dollar inflows form both offshore and onshore interbank players the Kwacha sold down to closing of 4700/20.
Standard Chartered Bank expects the Kwacha to follow the majors as focus shifts to the euro zone as debt worries take center stage.
4770 should still pose as a good resistance level though a break of it would open a move up to 4800
AND ON THE MONEY MARKETS: According to the BOZ daily statistical release, overnight rates on the interbank market on Monday were at 2.67%.
Liquidity on the interbank was approximately ZMK 626.9Billion and the central bank was out of open market operations.