The Nigerian naira is seen strengthening in the week to next Thursday, lifted by dollar flows from the energy sector, and the Ugandan shilling is expected to weaken if food and fuel price protests persist, traders said.
NIGERIA Nigeria's naira could strengthen on expectations of large dollar inflows from energy companies and the conclusion of presidential elections that saw President Goodluck Jonathan retain his position.
The naira was trading at 154.65 to the dollar early on Thursday, compared with Wednesday's close of 154.70, but dealers said the election of Jonathan was a positive signal that there would not be any major policy shift.
KENYA The Kenyan shilling is seen easing marginally against the greenback next week with anticipated dollar demand from the energy sector, while inflows were not expected to offer a major boost to the local currency. Vimal Chudasama at Chase Bank said he expected dollar demand to pick up and weaken the shilling slightly.
"I don't see inflows from agriculture and tourism sector from the Easter period affecting the shilling much," said Chudasama. Some traders see the shilling getting some reprieve from rising local interest rates, which typically attract offshore investors seeking relatively better returns by holding Kenyan government securities.
UGANDA The Ugandan shilling was slightly weaker against the dollar on Thursday, and traders said it could ease further if protests over rising food and fuel prices persist. Commercial banks quoted the shilling at 2,373/2,378 to the dollar, weaker than last Thursday's close of 2,353/2,358. "I expect it to go to 2,400 next week if the protest persists. We have very minimal inflows at the moment."
TANZANIA The Tanzanian shilling is expected to hold steady and to strengthen in coming months as export proceeds from coffee and cashew nuts start coming in. Commercial banks quoted the shilling at 1,510/1,515 to the dollar, the same as last week's close.
"There is some demand but the central bank has been providing support to stabilise the market," said Hakim Sheikh, a trader at Commercial Bank of Africa Tanzania. Traders said the shilling will likely trade around the 1,510 levels in the coming week.
GHANA The cedi strengthened 0.89 percent against the dollar for the week-to-date, pushing it to three-month highs, driven by bank and offshore investor demand for local currency ahead of a 320 million cedi bond issue set for April 27. The cedi was quoted at 1.4965/90, from Wednesday's close of 1.4985/1.5010.
ZAMBIA The kwacha is expected to remain stable against the dollar in the week to next Thursday due to balanced demand and supply for the local unit and the United States (US) currency. Commercial banks on Thursday quoted the kwacha at 4,685 from 4,695 a week ago.
"We expect this to hold because demand and supply is balancing and we see nothing significant to tip this balance," one trader said. Zambia's currency met firm resistance around 4,600 during 2010. On the few occasions it breached that level, it went on to test but failed to breach 4,550.
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