Kenya's shilling is expected to firm against the dollar next week after recovering from an all-time low, bucking a trend in African currencies which are under additional pressure because of the global flight from riskier assets.
KENYA Kenya's shilling is seen firming against the dollar after the central bank said on Wednesday it would stop injecting liquidity through reverse repurchase agreements. The shilling recovered from an all-time low of 95.10 against the dollar on Tuesday.
UGANDA Uganda's shilling looks likely to extend its losses against the dollar in the coming week and could test a new key psychological level of 2,800 due to surging greenback demand. However, traders said central bank action could stem the slide.
TANZANIA Tanzania's shilling weakened against the dollar on Thursday, with traders expecting it to remain within a tight range in the coming days as they keep an eye on oil imports. Commercial banks quoted the local currency at 1,616/1,622 to the dollar, compared to 1,590/1,598 at last week's close.
ZAMBIA The kwacha is expected to remain under pressure next week as investors flee emerging market assets and because of a slowdown in China's economy. "We expect the Kwacha to continue tumbling," said Stanley Tamele, head of financial markets at Standard Chartered Bank Zambia, in a research note. "Initial resistance level for USD/ZMK now stands at psychological barrier of 5,000. A break above this level should pave way for 5,080."
NIGERIA The naira is expected to weaken further against the US dollar next week as greenback supplies gradually thin out. The naira was trading at 153.95 to the dollar on the interbank market on Thursday, stronger than the 154.04 at Wednesday's close.
GHANA The cedi is expected to depreciate further on the back of increased corporate demand for US dollars, traders said. "The cedi-dollar could potentially trade above 1.5400 in the coming week on demand pressures," he said.