The Zambian Kwacha closed largely unchanged against the United States dollar in the latest trading session, holding just above the 19.500 level, according to market commentary from Access Bank Group.
Despite the stable finish, intraday trading showed notable fluctuations.
The local currency briefly slipped beyond its 200-day simple moving average of 22.2942, reaching a session high of 22.4750 before recovering.
Access Bank Group noted that prevailing tight liquidity conditions continued to weigh on the currency, leaving it exposed to further downside risks in the near term.
Read more: Kwacha ends six-day losing streak
“The Kwacha’s trajectory is expected to remain sensitive to both domestic liquidity conditions and external market developments in the sessions ahead,” it stated.
Meanwhile, global foreign exchange markets delivered mixed signals.
The US dollar recorded its sharpest daily decline in nearly two months, falling by 0.7 percent — its steepest drop since January 27, 2026 — as easing concerns over global oil supply contributed to a softer greenback.
The decline followed renewed optimism around the resumption of shipping activity through the strategic Strait of Hormuz, which pushed crude oil prices below the US$100 per-barrel mark and reduced inflationary pressures.
Market analysts highlighted the close relationship between oil prices and the US dollar, noting that the currency had recently behaved like a “petrocurrency” amid heightened geopolitical tensions linked to US-Israeli strikes on Iran.
However, early trading today shows a modest rebound in the dollar as oil prices edged back above US$100 per barrel.
While softer crude prices and improving sentiment around shipping routes have tempered recent dollar movements, analysts maintain a cautiously bullish outlook on the greenback until geopolitical risks fully subside.
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