Kenya's shilling may continue its free fall against the dollar next week amid calls for decisive action by the country's central bank, while the Ugandan and Tanzanian shillings are also staring at record lows.
KENYA Importer demand for dollars and further bouts of heavy buying could see Kenya's shilling plumb new depths in the week ahead, after it traded at a record low of 90.85 on Thursday, traders said. The shilling was quoted at 90.85/91.05 against the dollar - after falling 2.48 percent in intraday trading - and far weaker than last Thursday's close of 87.60/70.
"The pricing gap right now has moved from 10 cents to 50 cents, which means we could jump by one shilling or more. We are trading in a volatile market," said Dickson Magecha, a senior trader at Standard Chartered Bank.
UGANDA The Uganda shilling may well hit fresh all-time lows in the week ahead, undermined by tight dollar supplies and persistent demand, especially from the energy sector, traders said. Commercial banks quoted the local currency at 2,430/2,435 to the dollar, compared with last Wednesday's closing price of 2,400/2,405. Uganda's markets were closed last Thursday for a national holiday. Traders said the shilling would likely trade between 2,420-2,460 in the days ahead.
TANZANIA Tanzania's shilling is seen hovering just shy of its record low of 1,595 touched on June 9, with broad demand for the greenback keeping the local currency under pressure. Commercial banks quoted the shilling at 1,575/1,580 to the dollar, compared with 1,585/1,595 a week ago.
GHANA The Ghana cedi will extend its recent period of stability against the greenback next week, amid easing dollar demand from corporate clients and the central bank's continued commitment to supporting the local currency with interventions. He forecast the cedi would hold its 1.51 level against the greenback. The central bank said earlier this month that it was aiming for a five percent appreciation in the cedi over the rest of the year.