Lusaka - Zambia's kwacha tumbled to a new record low of 6.2050 against the dollar on Tuesday, extending its recent slide on demand for the green back and concerns about lower copper prices.
Copper prices on the London Metal Exchange last week hit their lowest since July 2010, sparking concern about the outlook for one of Africa's top producer of the metal.
"Local demand for the dollar, net dollar outflows from emerging markets and negative fundamentals such as weakening copper prices continue to weigh heavily on the Zambian currency," Zanaco Bank said in a market note.
The was expected to remain on the back foot in the near term, trading between 6.100 and 6.200 to the dollar, Zanaco said.
Zambia's central bank has said it will continue to intervene to stabilise the kwacha, in an attempt to a calm a foreign exchange market it previously described as gripped by panic.
Copper prices on the London Metal Exchange last week hit their lowest since July 2010, sparking concern about the outlook for one of Africa's top producer of the metal.
"Local demand for the dollar, net dollar outflows from emerging markets and negative fundamentals such as weakening copper prices continue to weigh heavily on the Zambian currency," Zanaco Bank said in a market note.
The was expected to remain on the back foot in the near term, trading between 6.100 and 6.200 to the dollar, Zanaco said.
Zambia's central bank has said it will continue to intervene to stabilise the kwacha, in an attempt to a calm a foreign exchange market it previously described as gripped by panic.