The Kwacha has hit its lowest ebb in eight month to trade at K7 against the US dollar yesterday.
Wednesday’s trading session saw the Kwacha touch an 8-month low following strong dollar demand on Interbank.
The local unit begin trading at K6.89 but quickly breached the K7 mark and eventually settled at K7.06.
According a Cavmont market report issued today the Kwacha made a brief recovery at noon trading at just less than seven Kwacha following improved dollar supply on interbank.
However the Kwacha closed the day trading at seven Kwacha sixty ngwee which was two point four percent weaker.
Meanwhile, a financial analyst has attributed the current depreciation of the Kwacha to a fall in copper prices and a rise in oil prices on the international market.
MAMBO HAMAUNDU says the governments standoff with the mine owners over the tax legislation and Value Added Tax -VAT- refunds have also contributed to the fall of the Kwacha against the US dollar and other major convertible currencies.
He told ZNBC news in an interview that some mining firms have already hinted on plans to go on care and maintenance meaning they have already reduced their production capacity.
Mr. HAMAUNDU says this has contributed to loss of investor confidence hence dollar inflows are not adequate.
He says the external forces such as decline in copper prices and rise in oil prices are difficult for government to address.