Tanzania’s shilling is expected to gain ground against the U.S. dollar this
week, while Kenya’s will weaken, traders said.
The Kenyan shilling is seen weakening due to dollar demand from merchant importers and firms in the energy sector, which normally increases in the last days of the month.
Commercial banks quoted the shilling at 108.00/20 compared with last Thursday’s close of 108.25/45. The shilling hit an all-time low on Wednesday of 108.50/70.
“We’re going into end of month period, (dollar) demand will be strong while there are no inflows in the market … so I expect the shilling to weaken,” said a trader at one of the commercial banks.
The Ugandan shilling is expected to hold steady, with commercial banks expecting a surge of inflows from charities and exporters of commodities that traditionally occurs toward month-end.
Commercial banks quoted the shilling at 3,675/3,685,compared with last Thursday’s close of 3,670/3,680.
“If the traditional month-end flows from NGOs, tea, coffee and other sources are healthy I see the unit holding its ground around current levels,” said a trader at one commercial bank. Most charities receive their money in dollars and convert it
to pay local expenses.
Tanzania’s Shilling is expected to gain due to increased dollar inflows from farm exports and tourism.
Commercial banks quoted the shilling at 2,315/2,325 per dollar, from 2,320/2,330 last Thursday’s close “We foresee the shilling strengthening slightly in the
coming week on increased inflows from agricultural exports and recovery in tourism,” Terry Karanja, a treasury associate at AZA, a Nairobi-based FX trading firm said in a market report.
Credit : Reuters