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The Kenyan shilling is seen trading in a range against the dollar in the week to Wednesday, while Uganda's shilling was expected to strengthen and the Tanzanian unit was forecast to hold steady or gain slightly.
KENYA The Kenya shilling is seen trading in a range of 74.75-75.75 against the dollar in the coming days on importer demand for greenbacks and central bank purchases matched by agricultural and aid agency inflows. At 0945, commercial banks posted the local unit at 75.30/40, largely unchanged from last Wednesday's close of 75.20/30.
The previous week also saw some offshore inflows of dollars from investors looking to put money into Kenyan corporate bonds. On the other hand, the central bank has also bought dollars, a total $16 million on both Tuesday and Wednesday.
TANZANIA The Tanzania shilling is seen holding steady or strengthening slightly against the dollar, helped by slow demand for greenbacks and low inflows of the US currency.
At the close of trading on Tuesday, commercial banks quoted the local unit at 1,319/1,324 versus the dollar, compared with 1,308/1,315 at last Wednesday's close. It closed last Tuesday at 1,305/1,310, and dealers said they saw it trading in a 1,310-1,330 range in the coming days.
UGANDA Uganda's shilling was seen strengthening against the greenback, helped by dollar flows into government securities from offshore investors. Commercial banks quoted the shilling at 1,910/1,915 per dollar, compared to last Wednesday's rate of 1,906/1,911, and traders said they saw the local unit trading in a range of 1895/1,925 in the coming days.

Copyright Reuters, 2009

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