LUSAKA, May 16 (Reuters) - Zambia's currency is expected to
continue trading with a bearish tone while the Kenyan shilling
is likely to firm and Uganda's currency should remain stable.
ZAMBIA
The kwacha ZMW= is likely to remain under pressure in the
coming week as major suppliers of U.S. dollars hold on to hard
currency in anticipation of higher levels.
On Thursday, the currency of Africa's second-largest copper
producer touched a year-high of 13.6000 per dollar from a close
of 12.8300 a week ago.
"(It) looks vulnerable to slide further as negative
sentiments in part continue to weigh down," the Zambia National
Commercial Bank (ZANACO) said in a note.
The International Monetary Fund (IMF) has repeatedly warned
that Zambia is struggling with high debts and shrinking foreign
currency reserves. The Kenyan shilling KES= is expected to strengthen against
the U.S. dollar due to tightening liquidity in the local money
market and muted demand for the greenback from oil importers,
traders said.
Commercial banks quoted the shilling at 101.00/20 per
dollar, the same as last Thursday's close.
"It's the start of a new credit reserve ratio cycle for
banks so liquidity can only get tighter...We could see the local
currency gain against the dollar," said a senior trader from one
commercial bank.
UGANDA
The Uganda shilling UGX= is seen trading in a stable range
as some players start to stay on the sidelines, loath to take
positions ahead of the presentation of the national budget next
month.
At 1056 GMT, commercial banks quoted the shilling at
3,765/3,775, compared to last Thursday's close of 3,770/3,780.
"I don't think we'll have a lot of players taking positions
in the days ahead of budget," said a trader at a leading
commercial bank.
Uganda's finance minister is due to unveil the budget for
the 2019/20 (June-July) financial year early next month but the
date has not been fixed.