The Kenya and Uganda shillings are forecast to firm against the dollar in the next week to Wednesday, while the Tanzanian currency is seen holding steady, dealers said.
KENYA Kenya's shilling is seen stronger, helped by US currency flows from the agriculture sector and non governmental organisations coupled with low dollar demand and central bank absence in the market. The commercial banks quoted the local unit at 74.30/50 to the dollar, compared with last Wednesday's close of 75.15/25.
Dealers said they expect the shilling to trade in the 73.80-75.00 range in coming days. The shilling will also strengthen due to less central bank activity in the market buying the US currency, as well as technical factors. On Tuesday ratings agency S&P affirmed its 'B' rating for Kenya and said the outlook for east Africa's largest economy was still positive.
TANZANIA The Tanzania shilling is expected to hold steady or firm, helped by dollar inflows from non-governmental organisations and the agriculture sector. Commercial banks quoted the local unit at 1,325/1,330 to the dollar, compared with 1,321/1,326 at last Wednesday's close. Dealers said they see the shilling trading in the 1,315-1,330 range in coming days. During the week the shilling weakened due to demand for the US currency from the energy and telecoms sectors.
UGANDA Uganda's shilling is forecast to strengthen, helped by dollar inflows from the agriculture sector and non governmental organisations and offshore investors interested in buying government securities. Commercial banks quoted the shilling at 1,879/1,884, compared with last Wednesday's close of 1,878/1,883. The local unit is expected to trade in the 1,865-1,890 range in coming days, dealers said.