Kazakh tenge may weaken by year-end

Traders and analysts expect the Kazakh tenge to strengthen against the dollar this month, but are bearish on the Central Asian nation's currency in the longer run, according to a Reuters poll. In the poll carried out from February 1 to February 5, five out of eight participants predicted that the tenge would edge up this month. But further on, some market players said they feared the oil rally that has buoyed the tenge could run out of steam.
The tenge gained 3.1 percent against the dollar last month as Brent crude traded near $70 per barrel. Stronger oil also helped Kazakhstan narrow its current account deficit to nearly zero in the fourth quarter of 2017 for the first time in nearly three years, according to preliminary central bank data.