(Adds Zambian kwacha)
NAIROBI, Jan 21 (Reuters) - Kenya's shilling is expected to
gain against the dollar in the next week to Thursday, while
Tanzanian, Ugandan and Nigerian currencies are seen holding
steady, traders said.
KENYA
The Kenyan shilling KES= is expected to rally, buoyed by
higher dollar inflows from offshore investors into the local
debt market and improved risk sentiment for so-called frontier
assets.
At 0700 GMT, commercial banks posted the shilling stronger
at 109.75/95 versus 110/110.20 last Thursday. Traders said a
Treasury bond auction had been met by high demand from foreign
investors.
"It will relieve some of the pressure on the currency for
the time being," said a senior trader at a commercial bank,
adding that a planned U.S. economic stimulus package was
boosting appetite for emerging-market assets.
The gains will, however, be capped by demand for dollars
from importers and any moves by the central bank to buy dollars
from the bank to shore up its reserves, the trader warned.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady as
dollar inflows from the mining sector balance demand from the
energy and manufacturing sectors.
Commercial banks quoted the shilling at 2,314/2,324 against
the dollar, the same as last Thursday's close.
"The demand is highly likely to remain the same from oil and
manufacturing importers, but we expect inflows from mining
activities to match the demand," a trader at one commercial bank
in Dar es Salaam said.
UGANDA
The Ugandan shilling UGX= is seen trading in a stable
range in the coming days as easing political risks following
last week's elections support positive market sentiment.
Commercial banks quoted the shilling at 3,680/3,690,
compared with last Wednesday's close of 3,705/3,715.
Markets were closed on Thursday last week for a holiday in
Uganda.
"I think ahead of the election there was elevated fear of
what may happen, or call it uncertainty, but I think that fear
is now dissipating," said a trader at one of the commercial
banks.
Incumbent President Yoweri Museveni was declared by the
country's poll body as winner of last Thursday's election with
59% of the vote against his rival Bobi Wine, who got 35%.
The kwacha ZMW= is expected to remain under pressure
against the dollar as demand for the hard currency continues to
outweigh supply.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 21.3300 per dollar
from a close of 21.2750 a week ago.
"It is likely to continue trading on the back foot in the
absence of any significant hard currency inflows," one
commercial bank trader said.
NIGERIA
The naira is seen flat in the coming week as traders watch
for policy details at the central bank's first rate-setting
meeting of the year.
The naira opened at 394.16 on the over-the-counter spot
market on Thursday, compared with 475 naira on the black market.
The currency has been under pressure on the black
market NGNFX=BDCN , where it trades more freely, widening the
gap with the official rate and prompting calls from the World
Bank for Nigeria to unify rates to attract inflow.
The central bank will hold its first interest rate meeting
for 2021 on Monday and Tuesday next week.
The naira is quoted at 381 to the dollar on the official
market, a level set in July and backed by the central bank.