NAIROBI, June 11 (Reuters) - Kenya's currency is next week
expected to trade on the back foot against the U.S. dollar as
Uganda's firms and those of Nigeria, Tanzania and Zambia hold
steady.
KENYA
The Kenyan shilling KES= is seen under pressure in the
coming week from oil importers and some multinational companies
buying dollars to meet their monthly obligations, traders said.
At 0940 GMT, commercial banks quoted the shilling at
106.70/90 per dollar, compared with 106.00/20 at last Thursday's
close.
"There will be increased demand from mid month...Next week
we expect to see oil importers making payments," said a senior
trader from one commercial bank.
UGANDA
The Ugandan shilling UGX= is expected to trade with a
firming tone versus the dollar as mid-month tax payments trim
demand by some importers.
At 0959 GMT commercial banks quoted the shilling at
3,730/3,740 against the dollar, compared to last Thursday's
close of 3,765/3,775.
"Demand will be minimal since we have tax payments, that
will probably keep the local unit biased on the stronger side,"
a commercial bank trader said.
NIGERIA
Nigeria's naira NGN= is seen range-bound across markets
next week, traders say, after the central bank last week revised
the currency rate on the futures market amid dollar shortages
plaguing the economy.
The naira opened at 387.50 against the dollar, a range at
which it has traded since this month. On the official market,
backed by the central bank, the naira was quoted at 361.
The central bank revised the settlement quote for the 5-year
currency to 578.37 naira on Wednesday, just off a record low of
584.11 naira touched last week.
Dollar demand from investors and importers has ballooned on
the interbank market with payment obligations accumulating amid
hard currency shortages triggered by an oil price crash. This
has funnelled demand to the black market, where the naira traded
at around 450 on Thursday.
TANZANIA
Tanzania's shilling TZS= is expected to hold steady next
week, drawing support from improving economic activity as
coronavirus restrictions gradually ease.
Commercial banks quoted the shilling at 2,309/2,319 on
Thursday, the same levels recorded last week.
"We expect the impact of COVID-19 to start easing in
upcoming weeks," a trader at a leading commercial bank said,
adding this would help the local currency.
ZAMBIA
The kwacha ZMW= next week is likely to trade flat against
the dollar due to reduced imports as disruptions in global
supply chains caused by COVID-19 limit international trade.
On Thursday, commercial banks quoted the currency of
Africa's second largest copper producer at 18.2140 per dollar
from a close of 18.1040 a week earlier.
"Should importer demand continue slowing down, the local
unit is likely to remain flat in interim," a local commercial
bank, Cavmont, said in a note.