The Tanzanian shilling is expected to remain stable next week due to sapped demand for US dollars, while the Kenyan shilling is expected to find support from foreign exchange inflows.
"There isn't much activity in the market. The shilling will likely remain at the same levels next week," said Nyanjula Seleman, a dealer at Commercial Bank of Africa Tanzania.
At 1214 GMT, commercial banks quoted the currency of Africa's second-largest copper producer at 9.9500 per dollar from 9.8900 a week ago. "After the tax payment deadline, we could see a reduction in (dollar) supply and consequently take the rate higher," the local branch of South Africa's First National Bank (FNB) said in a note.
At 2201 GMT commercial banks quoted the shilling at 3,435/3,445, weaker than last Thursday's close of 3,400/3,410. "There's quite a lot of liquidity in the interbank and I think players will be taking advantage of that to build positions," said a trader at one commercial bank who added some offshore investors will also likely be offloading some debt after a fall in debt yields at recent auctions.
"About 1,700 bureaux de change are currently accessing $15,000 each from Travelex every week and we expect the improved dollar liquidity in the market to have positive impact on the value of the naira," Aminu Gwadabe the head of Nigeria's bureaux de change association, told Reuters.
Ghana's central bank has set a mid-term target for inflation of 8 percent by mid-2017 but inflation rose to 17.2 percent in September, from 16.9 percent in August, the statistical service said on Wednesday. "The major surprise to the market is inflation. Inflation takes time to work through the trade side .... Higher import taxes in particular and the sluggish growth is making it a bit more comfortable for the cedi to be stable," Akligoh said. Joseph Amponsah of Dortis Research in Accra said the cedi would extend its stability in the week ahead to trade within the 3.9650 -3.9750 band to a dollar as the market is well-supplied with dollars from corporates.