Zambia’s kwacha outperformed the U.S Dollar and other major convertibles on Tuesday in line with expectations. The local unit is likely to continue with its strong campaign in the near term as the market continues to be chocked of Kwacha liquidity coupled with some corporate conversions as we head towards mid-month. Kwacha closed at 6.360-80 per dollar.
11 June 2014
Bank of Zambia Exchange Rates
The LuSE All Share Index maintained yesterday’s close of 6,037.89 points as no price movements were recorded. Trading activity was recorded in PUMA, CCHZ, CEC, LAFARGE, INVESTRUST, NATBREW, SCZ, SHOPRITE, ZAMBREW, ZANACO and ZSUG .A total of 66, 802 shares were transacted in 32 trades resulting in a turnover of K149,891. The LuSE market cap today was recored at : K62,014,000,000 including Shoprite. K27,775,000 ,000 excluding Shoprite.
South Africa’s government bonds jumped on Tuesday as hawkish comments from central bank Governor Gill Marcus combined with a weak auction to drive benchmark prices lower.
The rand also traded weaker, losing just under 1 percent against the dollar as Marcus’ comments about diminishing capital inflows to emerging markets added to losses from a general sell-off of risky assets. It was at 10.7250/dollar at 1537 GMT, down 0.8 percent from its previous close in New York.
Marcus reiterated the bank was in a monetary tightening cycle, with inflation likely to remain outside a 3-6 percent target range for the next four quarters, mainly due to the weak rand and food prices – Reuters Global Markets: The dollar extended gains against the euro on Tuesday on expectations that the Federal Reserve could raise U.S. interest rates sooner than previously expected, but fell against the yen on safe-haven demand for the Japanese currency.
Traders said that strong U.S. economic data, including the government’s nonfarm payrolls report last Friday showing employment returned to pre-recession levels, supported the view that the Fed could take a more hawkish stance on tightening monetary policy at its meeting next week.
Traders’ bracing for potential signs of a Fed rate hike earlier than forecast helped push U.S. government bond yields higher, which in turn drew demand for dollars. The euro was last down 0.35 percent against the dollar at $1.3545 but was still higher than a four-month low of $1.3503 hit last Thursday after the European Central Bank announced its monetary stimulus measures