Zanaco Daily Treasury Newsletter

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Contact the Zanaco Treasury Team: Virginia Mwalilino (0977 561166), Nyangu Mwansa (0977 600228), Mudenda Sikapoto (0977 796025), Nana Mukwiza (0966 745656) ,Roy Mbazima (0977199495), Jibinga Jibinga (0977 836332), Kawang’u Sakuwaha (0972 973318) Landlines: +260-(211)-425 795/425 796/425 798/4257 99/+260 977 915903/+260 961 050352

Local Currency Markets

Thursday’s session saw the local currency trade within its newly established range as it continues to battle for support in a dollar strained market. The kwacha made marginal loses to close at K17.4550/17.5050 on the bid and the offer respectively against it opening levels of K K17.4200/17.4700 per dollar.

The kwacha is anticipated to remain range bound in today’s session in a market that is being driven by supply and demand fundamentals with an upside risk emanating from China’s reported participation in the G20 Common Framework.

International Currencies

Sterling: LONDON, April 21 – (Reuters) Sterling fell to a 10-day low against a strengthening euro, with investors staying focused on the respective future monetary policy paths of the Bank of England and other major central banks.

 

Sterling fell against a strengthening euro while it was flat versus the dollar. The pound was down 0.2% at 83.21 pence per euro, after hitting its lowest level since April 11 at 83.66 earlier in the session.

Euro: LONDON, April 21 (Reuters) – A series of hawkish comments amplified bets that the European Central Bank would soon hike interest rates, lifting the euro to a one-week high on Thursday amid expectations French President Emmanuel Macron would win his reelection bid on Sunday.

In European morning trading, the euro rose as much as 0.7% against the U.S. dollar to $1.0936, its highest level since April 11. The U.S. dollar index, which gauges the strength of the currency versus a basket of rivals, was down 0.4% at 99.94.

Rand: JOHANSBURG, April 21 (Reuters) -The South African rand endured deepening losses on Thursday, as severe power cuts and deadly floods weighed on the economic growth outlook.

At 1438 GMT, the rand ZAR=D3 traded at 15.3650 against the dollar, around 2.23% weaker

than its Wednesday close and taking losses since the end of last week to almost 5%.

Local Money Markets

 

Market liquidity was ZMW1, 482.32 million and volumes traded on the overnight interbank market were ZMW345.00 million. The weighted cost of the overnight interbank funds maintained at 9.00%.

Treasury Bill auction tender 08/2022 saw yields drop by an average of 12 basis points. 91 days was at 9.3001%, 182 days was at 10.8024%, 273 days was at 11.0001% and 364 days was at 13.7500%. The auction was undersubscribed at 29.27%.

International Commodities

Gold: SINGAPORE, April 21 (Reuters) – Gold prices slipped on Friday, pressured by the strength in U.S. Treasury yields and the dollar, which also put bullion on course for its first weekly loss in three.

Spot gold was down 0.1% at $1,949.33 per ounce, as of 0242 GMT. U.S. gold futures were up 0.2% at $1,952.00. The outlook for gold is subdued as rising rates obviously weigh,

but until we break the trading range (between $1,930 to under $2,000)

Oil: NEWYORK, April 21 (Reuters) -Oil prices rose on Thursday, buffeted by concerns about tightened supply as the European Union (EU) mulls a potential ban on Russian oil imports that would further restrict worldwide oil trade.

 

Brent crude futures settled up $1.53to close at $108.33 a barrel, after earlier reaching a high of $109.80. U.S. West Texas Intermediate (WTI) crude futures ended up $1.60, or 1.6%, to $103.79, after earlier reaching a high of $105.42.

Copper: LONDON, April 20 (Reuters)-Copper prices rebounded on Thursday, bolstered by hopes of more stimulus in key metals consumer China to support its pandemic-hit economy and lingering concerns about supply from top producers Peru and Chile. Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was up 0.7% at $10,294 a tonne, as of 0218 GMT, after dropping 0.8% on Wednesday. – ZANACO