The Kenyan shilling is likely to come under pressure in the days ahead due to turmoil in the euro zone and corporate demand for dollars, while offshore investor participation in a Ugandan bond auction next week could help its shilling.
KENYA: Kenya's shilling is seen weaker against the dollar in the coming days, weighed down by possible dividend payouts by foreign-owned companies and greenback demand from oil sector importers. The Central Bank of Kenya (CBK) has been active in the market this week, mopping up liquidity and selling an unspecified amount of dollars directly to commercial banks to prevent the shilling from falling steeply against the dollar. Traders said they expected demand for dollars from importers as the month comes to an end. They added that the currency could weaken further as banks rattled by the escalating euro crisis hold on to long dollar positions. Commercial banks quoted the shilling at 84.20/40 per dollar, 0.8 percent weaker than last Thursday's close of 83.60/70.
UGANDA: Uganda's shilling is forecast to climb against the dollar over the next week, buoyed by possible inflows from offshore investors participating in a Treasury bond auction on Wednesday.
The Bank of Uganda (BoU) is due to sell 100 billion shillings ($40.40 million) in 2- and 5-year bonds and analysts say the relatively high yields on Ugandan debt could spur healthy offshore investor participation. Commercial banks quoted the shilling at 2,465/2,475, weaker than 2,465/2,475.
TANZANIA: Tanzania's shilling is seen holding steady against the dollar in the days ahead and could firm slightly due to high interest rates and lacklustre demand for the greenback. Commercial banks in Dar es Salaam quoted the shilling at 1,581/1,591 on Thursday, weaker than 1,570/1,578 a week ago.
GHANA: Ghana's cedi could remain flat against the dollar next week due to a persistent liquidity squeeze in the interbank market as importers look elsewhere to meet their greenback requirements, traders said. The interbank market was quiet in Thursday's session as a dearth of dollar sellers hindered trading, with traders quoting dollar-cedi indicatively at 1.900/50, said Barclays Bank Ghana chief trader Kobla Nyaletey.