FNB has stated that the local unit continued to lose ground against the greenback in yesterday’s trading session, reaching a new all-time low of K16.525.
“At this rate, uncertainty seems to gripping the market as participants on both sides seem unsure at what point the tide will turn. At these levels, the kwacha is just shy of parity against the South African Rand which seldom moved in yesterday’s session,” FNB stated.
“We expect to open today’s session at yesterday’s close of K16.525 and to trade under pressure against the greenback.”
Resistance, however is placed at K16.70, meaning the local currency may not reach K17 per U.S dollar.
However, should the central bank intervene, which is the most likely thing to happen, the kwacha will rebound.
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