Zambia's kwacha seen on back foot, Kenyan shilling firm

LUSAKA: Zambia's kwacha is expected to remain under pressure against the US dollar next week as the Kenyan shilling firms and Tanzania's currency holds steady.

ZAMBIA

The kwacha is likely to remain under pressure against the dollar as demand for hard currency outweighs supply.

Commercial banks quoted the currency of Africa's second largest copper producer at 22.5100 per dollar on Thursday, from 22.4850 at the close of business a week ago.

"Although Copper prices have remained buoyant, the local unit has failed to move in tandem with this development owing to inadequate supply from exporters while the demand side has continued to be high," Access Bank said in a note.

KENYA

The Kenyan shilling is expected to strengthen as the overflow of dollar demand from fuel and food importers from last month dwindles, traders said.

Commercial banks quoted the shilling at 107.65/85 on Thursday, slightly weaker than the previous week's close of 107.40/60.

"We should start strengthening from Monday onwards as last month's overflow demand will start to be subdued," one trader said.

TANZANIA

Tanzania's shilling is expected to hold steady next week with support from moderate US dollar demand from importers and inflows from investors.

Commercial banks quoted the shilling at 2,314/2,324 on Thursday morning, unchanged from the last week's close.

"We expect the shilling to remain stable, supported by foreign currency reserves, moderate dollar demand from importers and inflows from investors, as well as diaspora remittances," Terry Karanja, a treasury associate at AZA, a Nairobi-based FX trading firm, said.

UGANDA

Ugandan markets were closed on Thursday for a public holiday.