LUSAKA, Aug 8 (Reuters) - Zambia's currency is likely to
come under pressure next week as those of Nigeria, Kenya and
Uganda hold steady.
ZAMBIA
The kwacha ZMW= is expected to remain under pressure in
the coming week due to limited supply of hard currency.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.0000 per dollar
from a close of 12.8700 a week ago.
"Unless dollar supply is injected into the market, our
trajectory is that the kwacha will continue to weaken," the
local branch of South Africa's First National Bank (FNB) said in
a note.
NIGERIA
Nigeria's naira NGN= is seen stable next week after the
currency hit a new resistance level amidst scarce dollar
liquidity as importers are unwilling to bid at weaker levels,
traders said.
The naira was quoted at 363.50 per dollar on Thursday, a
level it has traded at since this week on thin volumes. The
currency was quoted at 360 on exchange bureaus and at 306.90 on
the official market, backed by the central bank.
Nigeria operates a multiple currency regime.
Foreign inflows have dried up in the wake of declining bond
yields and the central bank's new focus to boost lending to help
an economy stuck in low gear. The bank launched an unscheduled
open market (OMO) auction on Wednesday to target
investors. "For about three weeks, there's been no liquidity. But it
got really bad in the last one week," one trader said. "If the
OMO becomes more frequent maybe we may see foreign investors."
KENYA
The Kenyan shilling KES= is seen steady against the dollar
in the coming week with inflows from offshore investors buying
government debt helping ease excess liquidity in the local money
market, traders said.
Commercial banks quoted the shilling at 103.20/40 per
dollar, the same as last Thursday's close.
"Mid-term papers are really attractive especially for
foreign funds, I can see inflows coming into that issue that
might support the shilling ... we're seeing a lot of liquidity
on the money market side," said a senior trader from one
commercial bank.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
range in coming days as some firms reserve a part of their local
cash holdings for pending tax payments.
At 0918 GMT commercial banks quoted the shilling at
3,690/3,700, the same as last Thursday's close.
"Appetite for dollars has been broadly flat and considering
most firms will be preparing for mid-month payments, I don't see
that changing," said Faisal Bukenya, an independent foreign
exchange trader.
He said the shilling was likely to exchange hands at between
3,685-3,700 over the next week.