Maravi

Kwacha appreciates amid copper gains on London Metal Exchange

Kwacha appreciates amid copper gains on London Metal Exchange
Written by Joan Chirwa
Saturday, October 03, 2009 5:35:00 PM

THE local currency on Thursday was a touch stronger against the US dollar to close trading at between K4,690 and K4,730. It opened trading during the day under review at between K4,740 and K4,780 against the US dollar.

According to the Citibank treasury market update, the kwacha appreciated on the back of dollar selling on interbank, sparked off by the gains in copper prices on the London Metal Exchange (LME).

“Market players joined the frenzy by tactfully selling dollars yesterday (Wednesday), as they cut their dollar long positions,” Citibank stated.

The local currency was by noon on Thursday firmer with interbank quoting the currency pair at K4,640 and K4,680 per US dollar.

Copper edged higher while other industrial metals retreated in choppy Asian trading on Thursday, with activity muted by the start of a week-long holiday in China.

Sentiment was supported by a US dollar under pressure, which made dollar-priced commodities cheaper, and data showing China's manufacturing sector continuing to gather strength.

Three-month copper on the London Metal Exchange added US $7 to $6,162 a tonne, after surging nearly three per cent on Wednesday, thanks to a softer US dollar and end-of-quarter position squaring.

Last week, the local currency had depreciated on the back of sliding copper prices that fell to trade under US$6,000 per tonne.

“The global economy is generally viewed as showing signs of recovery following the crisis and so some analysts anticipate that commodities will hold steady to bullish on account of rising demand, though economic data remains rather mixed, and therefore resulting in bouts of volatility,” stated Citibank.

Labels: COPPER, KWACHA

posted by MrK @ 4:35 PM