African currencies outlook

Nigeria's naira is seen extending gains against the dollar in the coming week mainly due to dollar inflows from the energy sector, while greater offshore interest in Kenya's bond market might support the shilling.
NIGERIA Nigeria's central bank sold $250 million at 150.40 naira to the dollar, less than the $362 million demanded. Traders said with more dollar inflows, the naira should appreciate to around 151.60-152 a dollar in the coming days.
KENYA The Kenyan shilling might rise against the dollar next week, helped by offshore investors selling dollars to invest in fixed income securities, encouraged by rising yields. The Central Bank of Kenya (CBK) eased liquidity in the money market twice this week by selling 19.09 billion shillings ($212 million). The shilling was posted at 89.95/90.05 against the dollar, weaker than last Thursdays close of 89.60/70.
UGANDA Uganda's shilling is seen holding steady against the dollar over the next week with a bias to weaken, with typical end-of-month greenback demand from the energy and manufacturing sectors. After tumbling through a string of all-time lows in the first half of the year, hitting a record low of 2,710 on June 30, the shilling has steadied in a range of 2,520-2,600 in the last ten days after the central bank sold hard currency on July 1. Technical analysis showed support for the shilling 2,625 while its resistance level stood at 2,585.
TANZANIA Tanzania's shilling weakened against the dollar in quiet trading on Thursday, with traders expecting the currency to come under pressure from corporate dollar demand in the coming days. Traders said they expected the shilling to trade in the 1,580-1,590 range in the coming days.
ZAMBIA The kwacha is likely to trade in a range between 4,800-4,900 per dollar in the week ahead, with dollar inflows expected from the mining sector and dampened investor appetite for frontier currencies seen offsetting each other. Commercial banks on Thursday quoted the currency of Africa's top copper producer at 4,825, slightly down from 4,815 to the dollar a week ago. The kwacha has traded between 4,800 and 4,600 for most of this year.
GHANA Ghana's cedi opened slightly firmer at 1.5095/1.5130 to the dollar on Thursday and is expected to push up higher in coming sessions in the lead-up to a 5-year bond auction towards the end of the month, traders said. "Corporate demand for the dollar next week towards the settlement of bills will not be enough to halt the cedi from making gains. Next week we should see the cedi trading (in a range of) 1.5050-1.5095," said Biggles Amponsah of Access Bank.