Kenyan, Ugandan and Ghanaian currencies are expected to remain steady next week, with traders in Uganda and Ghana watching out for the impact of the US interest rate hike.
Nairobi-based traders say the local currency was likely to be stuck in the 102.00-102.50 range, with the central bank expected to defend the 102.50 level, as it has done several times in the past, by selling dollars.
"Corporate demand will largely remain absent because firms are closing books for the year. However, I expect some residual fears from US interest rate decision ... those fears could cause some marginal weakening," said a trader from a leading commercial bank.
"In the week ahead, though demand pressure remains firm, the cedi is expected to extend its stability as traders watch to see where the greenback will trade," said Joseph Biggles Amponsah, an analyst at the Accra-based Dortis Research.