NAIROBI, Jan 21 (Reuters) - Kenya's shilling is expected to
gain against the dollar in the next week to Thursday, while
Tanzanian and Ugandan 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 firmer 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 to last Wednesday's close of 3,705/3,715.
Markets were closed on Thursday last week as it was 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 garnered 35%.