LUSAKA: Zambia's currency may remain under pressure against the US dollar next week as those of Kenya, Uganda and Tanzania's hold steady.
Zambia
The kwacha will likely trade on the back foot against the dollar next week as demand for hard currency remains higher than supply.
On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 16.7147 per dollar from a close of 16.5500 a week ago.
"There is very high demand from importers, which is not being matched with supply of dollars into the market," one commercial bank trader said.
Kenya
Kenya's shilling is expected to hold steady but with a bias to weaken due to increased importer dollar demand.
Commercial banks quoted the shilling at 110.40/60 to the dollar, compared with last Thursday's close of 110.30/50.
"There is definitely still a bit of pressure. It does look like the pressure is still with us. I do expect this kind of pressure to hold," a trader at one commercial bank said.
Uganda
The Ugandan shilling is seen trading on a stable footing, supported by hard currency inflows from exporters of commodities like coffee, tea and cocoa.
Commercial banks quoted the shilling at 3,535/3,545, compared with last Thursday's close of 3,525/3,535.
"Normally the time of end of month and into early next month the market gets slightly high commodity inflows," said a trader at a commercial bank, adding those inflows will likely keep the shilling stable in the 3,520-3,550 range.
Tanzania
Tanzania's shilling is expected to hold steady with inflows from investments and exports matching demand from the energy and manufacturing sectors.
Commercial banks quoted the local currency at 2,305/2,315, stronger than 2,314/2,324 levels at last Thursday's close.
"We expect the shilling to continue being supported in the near term by continued export and investment inflows," said Terry Karanja, a treasury associate at AZA, a Nairobi-based FX trading firm.
Comments
Comments are closed for this article.