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WEEKAHEAD-AFRICA-FX-Kenya, Uganda shillings to strengthen, Tanzania's to hold steady

Published 30/01/2020, 12:21
WEEKAHEAD-AFRICA-FX-Kenya, Uganda shillings to strengthen, Tanzania's to hold steady
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KAMPALA, Jan 30 (Reuters) - Kenya's and Uganda's shillings

are expected to gain ground against the dollar in the next week

to Thursday, while Tanzania's will hold steady, traders said.

KENYA

The Kenyan shilling KES= is forecast to strengthen,

supported by inflows from offshore investors buying government

bonds and subsiding dollar demand from the energy and

manufacturing sectors.

Commercial banks quoted the shilling at 100.55/75 per

dollar, compared with 100.80/101.00 at last Thursday's close.

"We're not seeing the end-month push for dollars anymore ...

there is a higher affinity for investors bidding for bonds,"

said a trader from one commercial bank.

TANZANIA

Tanzanian shilling TZS= is expected to hold steady, with

traders forecasting sufficient dollar availability to meet

importer demand.

Commercial banks quoted the shilling at 2,305/2,315 on

Thursday, the same as last Thursday's close.

"The available dollars will at least calm down the current

demand in the market which is highly driven by importers,” a

trader in one commercial bank in Dar es Salaam said.

UGANDA

The Ugandan shilling UGX= is expected to strengthen,

helped by month-end dollar inflows from charities.

Commercial banks quoted the shilling at 3,675/3,685,

compared with 3,670/3,680 at last Thursday's close.

"Inflows from NGOs (non-governmental organisations) will

keep the local unit biased toward the stronger side," said a

trader from a leading commercial bank.

The trader said inflows from other exports like coffee and

gold would also help. The two are the east African country's

largest exports and top sources of foreign exchange.

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