NAIROBI: Kenya's shilling is expected to lose momentum against the US dollar in the coming week but most other African currencies are likely to remain stable.
KENYA
The Kenyan shilling is seen weakening because of end of the month dollar demand from the energy and manufacturing sector exceeding hard currency inflows, traders said.
Commercial banks quoted the shilling at 100.65/85 per dollar, compared with 100.10/30 at last Thursday's close.
"Recently we've seen importer demand overtaking dollar supply," said a senior trader from one commercial bank.
ZAMBIA
The kwacha is expected to remain range-bound in the coming week, supported by month-end US dollar conversions that are expected to boost supply enough to match demand.
On Thursday commercial banks quoted the currency of Africa's second-largest copper producer at 12.00 per dollar, from a close of 11.95 a week ago.
"The local unit is expected to maintain these levels as demand and supply continue being the major driver on the currency pair in the short to medium term," Cavmont Bank said in a note.
UGANDA
The Ugandan shilling is seen trading stable versus the US dollar in the coming days, underpinned by inflows from non-governmental organisations performaing conversions to pay salaries.
At 1026 GMT commercial banks quoted the shilling at 3,700/3,710, unchanged from last Thursday's close.
"As we move toward the end of the month we expect the normal flows that come in from charities ... some support will come from there," said a trader at a leading commercial bank.
TANZANIA
The Tanzanian shilling is also expected to remain stable against the US dollar next week, with the possibility of a slight appreciation because of an increase in inflows from tourism, mining, export from agriculture and central bank intervention in the market.
On Thursday banks quoted the shilling at 2,340/50, unchanged from last Thursday's close.
A senior forex trader at one of the commercial banks said there were inflows from tourism as the sector hits peak season, agriculture products exports and the mining sector.
"Looking into the current trend we expect the shilling to remain stable next week with the possibility of slight appreciation to 2,338/2,348 levels," he said.
Comments
Comments are closed.