DAR ES SALAAM, Oct 31 (Reuters) - Kenyan and Zambian
currencies are likely to gain against the U.S. dollar next week
while those of Uganda and Tanzania are expected to soften.
KENYA
The Kenyan shilling KES= is expected to strengthen due to
inflows from horticulture exports and offshore investors buying
stocks as markets players wait for parliament's decision on
lifting a cap on commercial interest rates.
Commercial banks quoted the shilling at 103.25/45 per
dollar, compared with 103.80/104.00 at last Thursday's close.
"We are seeing end month demand subdued by inflows from
horticulture and non-governmental organisations ... in the new
month markets are waiting for the rate cap decision, we're
seeing bank shares shooting up and that's another form of
inflows," said a senior trader from one commercial bank.
ZAMBIA
The kwacha ZMW= may appreciate against the U.S. dollar
next week, supported by an increased supply of hard currency as
investors turn to emerging markets after the Federal Reserve
slashed interest rates.
On Thursday, commercial banks quoted the currency of
Africa's second-largest copper producer at 13.2700 per dollar
from a close of 13.2000 a week ago.
"We could see foreign investors seek high-yielding
securities in emerging markets. This could in turn result in a
possible increase in U.S. dollar supply," the Zambian branch of
South Africa's First National Bank (FNB) said in a note.
UGANDA
The Uganda shilling UGX= is expected to weaken due to
increased dollar demand from consumer goods importers preparing
for December festivities.
Commercial banks quoted the shilling at 3,710/3,720,
compared to last Thursday's close of 3,725/3,735.
"Importers are starting to exert higher demand that we
normally anticipate around this time," said a trader at a
leading commercial bank, referring to importers of textiles,
leather products and fuel. He said the shilling could weaken to
around 3,730 in coming days.
TANZANIA
The Tanzanian shilling TZS= is expected to weaken due to
increased U.S. dollar demand.
Commercial banks quoted the shilling at 2,300/2,310 compared
with last Thursday's close of 2,296/2,306.
"There is a pressure on the shilling which is expected to
continue next week because of the high demand for dollars mainly
driven by oil importers, manufacturers and telecoms," a trader
at one commercial bank in Dar es Salaam said.
(Reporting John Ndiso, Chris Mfula, Elias Biryabarema and
Nuzulack Dausen; Compiled by Chris Mfula; Editing by Kirsten
Donovan)