The Kenyan and Ugandan shillings were expected to weaken against the dollar in the coming week, while Tanzania's currency was seen holding steady, traders said on Wednesday.
KENYA The Kenyan shilling was seen weakening in the coming week, but staying above eight-month lows hit on Tuesday on the back of political tension over how the coalition government would fight graft.
Commercial banks quoted the local currency at 76.85/77.15 to the dollar down from 76.30/40 at last Wednesday's close. Traders said they expected the shilling to trade in the 76.50-77.80 range in coming days. The shilling plunged to 77.75/95 on Tuesday, but has since recouped some losses, helped by a rebound in risk appetite from investors globally. "We will possibly still see a bit of a weaker shilling," said Moses Kiboi, head of trading at Citibank.
TANZANIA The Tanzanian shilling was expected to hold steady in the next week in slow trade, and possibly strengthen slightly. Commercial banks quoted the local currency at 1,345/1,351 to the dollar, little changed from 1,348/1,351 at last Wednesday's close. Traders said they expected the shilling to trade in the 1,340-1,350 range in the days ahead.
"Any end-of-month appreciation next week will be met by demand and just balance itself out. The central bank has been consistent in selling dollars in the market," said Esther Maruma, a trader at Barclays Bank Tanzania.
UGANDA Uganda's shilling was seen weakening due to an increase in dollar demand from corporate clients and scant inflows of the US currency. Commercial banks traded the local currency at 2,015/2,020, per dollar, down from last Wednesday's close of 1,982/1,987. The shilling was expected to trade within the 2,015-2,030 range in the week ahead.