The Kenyan shilling is seen firming against the dollar in the next week to Thursday, while the Ugandan shilling and Nigerian naira is expected to weaken, traders said.
KENYA: The Kenyan shilling is expected to strengthen and break the 82 level, supported by tight liquidity, compounded by high yielding government papers seen drawing offshore investors. The average interbank rate rose to 27.2 percent on Wednesday, the highest level since December 29 at 28.8 percent, and up from 26.8 percent the previous day.
Commercial banks quoted the local currency at 82.40/60, firmer than last Thursday's close of 82.65/85, though electronic trading of the shilling has been interrupted since Monday after one of the country's main fibre optic cable was cut, affecting internet service providers.
UGANDA: The Ugandan shilling is forecast to weaken, undermined by corporate demand although traders say a Treasury bill auction on Wednesday could lend some support. Bank of Uganda (BoU) is due to auction Treasury bills worth 110 billion shillings ($44.7 million) of 91-, 182-, and 364-day tenors, with yields expected to fall, echoing the central bank's new cycle of monetary policy easing.
TANZANIA: Tanzania's shilling is seen holding steady due to tight liquidity on the local currency and reduced dollar demand. Commercial banks quoted the shilling at 1,595/1,600 to the dollar on Thursday, slightly moved from 1,592/1,597 a week ago.