NAIROBI, Feb 4 (Reuters) - The Kenyan shilling is seen
strengthening slightly against the dollar in the coming week
while traders expect the Nigerian naira to weaken.
KENYA
Kenya's shilling KES= is expected to gain ground, helped
by dollar inflows from tea and coffee exports and remittances.
Commercial banks quoted the shilling at 109.75/95 to the
dollar, compared with last Thursday's close of 110.05/25.
"There is no demand from the energy sector. Also there have
been some good inflows from diaspora (remittances) and tea and
coffee. The market will remain on the bias for a stronger
shilling," a trader at one commercial bank.
A second trader did not see the shilling strengthening much
beyond the 110.00/20 level, where he said there were dollar
buyers waiting to come into the market.
NIGERIA
The Nigerian naira NGN= is seen easing on the spot market
due to rising dollar demand after the central bank weakened the
currency on the futures market this week, traders said.
The naira hit an intra-day low of 416.95 per dollar on the
over-the-counter spot market this week as commercial banks
scrambled for dollars while the currency eased on the futures
and forwards market.
The currency has been under pressure after oil prices
crashed, slashing government revenues and creating dollar
shortages as well as funnelling demand to the black market.
The naira is quoted at 381 to the dollar on the official
market, a level set in July and backed by the central bank, a
discount of 20% to the black market rate of 480 naira.
UGANDA
The Ugandan shilling UGX= is seen stable in the coming
days as weak importer activity curbs appetite for hard currency.
At 1300 GMT commercial banks quoted the shilling at
3,660/3,670, compared to last Thursday's close of 3,680/3,690.
"Importer demand has generally remained sluggish possibly
because consumer spending is also weak," said a trader at one of
the commercial banks, adding the situation was not expected to
improve in the short term.
He said the local unit would likely oscillate between
3,665-3,700.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady next
week as hard currency inflows match the expected demand in the
market.
On Thursday, commercial banks quoted the shilling at
2,314/2,324, the same levels recorded a week earlier.
"We foresee a stable shilling in the coming week, as
Tanzania continues attracting investors into the country," said
Terry Karanja, a treasury associate at AZA, a Nairobi-based FX
trading firm.