The Kenyan shilling was expected to hold steady against the dollar in the week to Wednesday, while the Ugandan and Tanzanian currencies were seen easing, traders said.
KENYA Kenya's shilling was seen holding steady but could possibly strengthen slightly in line with a generally weaker dollar world-wide. The commercial banks quoted the local unit at 75.35/45 to the dollar, compared with last Wednesday's close of 75.55/65.
Traders said they expected the shilling to trade in the 75.10-75.80 range in coming days. Traders saw the shilling gaining marginally due to a generally weaker dollar globally. "We are seeing the dollar also weakening globally, so that could also give some impetus for the shilling to strengthen," said Omar Abdalla, a trader at Gulf African Bank. Central bank bought $5 million from the market, limiting the local currency's gains, traders said.
TANZANIA The Tanzania shilling is expected to weaken slightly next week as demand for the dollar from telecommunications and oil sectors start to slowly pick up. Commercial banks quoted the local unit at 1,335/1,340 to the dollar, compared with 1,332/1,337 at last Wednesday's close. Traders said they expect the central bank to intervene more aggressively in the foreign exchange market to shore up the shilling's stability if the local currency falls sharply against the dollar in the next few weeks.
UGANDA Uganda's shilling was seen easing in the week ahead due to rising corporate dollar demand amid sluggish inflows. Commercial banks posted the shilling at 1,915/1,925 to the dollar compared with 1,915/1,920 quoted a week ago.
The local unit was expected to trade in the 1,915-1,930 range in coming days. "I think the shilling will not go above the 1,930 resistance level. We are likely to see a correction at 1,920 level if the current demand mainly from telecommunication sector is met."
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