DAR ES SALAAM, Feb 13 (Reuters) - Kenya's shilling is
expected to weaken against the dollar in the next week, while
Uganda's will be stable, traders said.
KENYA
The Kenyan shilling KES= is seen under pressure in the
coming week due to increased dollar demand from merchandise
importers and some multinational companies, traders said.
Commercial banks quoted the shilling at 100.40/60 per
dollar, compared with 100.35/55 at last Thursday's close.
"As we go into dividend payment period we might see the
strengthening slow down," said a senior trader from one
commercial bank.
UGANDA
The Ugandan shilling UGX= was seen holding steady, with a
central bank decision to maintain its key rate expected to fuel
favourable market sentiment.
Commercial banks quoted the shilling at 3,664/3,674,
compared with last Thursday's close of 3,670/3,680.
"Most market players expected a (rate) hold which turned out
the case so overall I don't expect any major movement on either
side of the market," said a trader from a leading commercial
bank.
On Thursday Bank of Uganda held its benchmark lending rate
at 9%.
TANZANIA
The Tanzanian shilling TZS= is expected to gain slightly
due to reduced dollar demand from importers and an increase in
inflows from non-governmental organisations.
Commercial banks quoted the shilling at 2,306/2,316 per
dollar, the same level as last Thursday's close.
“The shilling will gain slightly ... because there are many
NGOs which are in pipeline selling dollars,” a trader at one
commercial bank said.
“There is reduced pressure ... due to the slow demand for
dollars because importers who import from China are not trading
as much because of coronavirus ... this will stabilise the
shilling."