DAR ES SALAAM, Oct 24 (Reuters) - Kenya's shilling is
forecast to gain ground against the dollar in the next week to
Thursday, while Uganda's currency will weaken and Nigeria's
naira will be stable, traders said.
KENYA
The Kenyan shilling KES= is expected to strengthen due to
inflows from offshore investors buying government bonds and
tightening liquidity in the local money market that will counter
dollar demand from the energy sector.
Commercial banks quoted the shilling at 103.15/35, compared
with 103.65/85 at last Thursday's close.
"We're watching investor interest in the infrastructure bond
... we're not seeing much in terms of end-month demand," said a
senior trader from one commercial bank.
UGANDA
The Ugandan shilling UGX= is forecast to weaken,
undermined by a rebound in demand for dollars from the energy,
manufacturing and construction sectors.
Commercial banks quoted the shilling at 3,710/3,720,
compared to last Thursday's close of 3,685/3,695.
"Customer appetite has rebounded from across board and that
will likely exert significant pressure on the local unit," said
a trader from a leading commercial bank.
TANZANIA
Tanzanian shilling TZS= is expected to hold steady, helped
by dollar demand from the telecoms, energy and manufacturing
sector being matched by supply from companies selling dollars to
meet end-month obligations like salaries.
Commercial banks quoted the shilling at 2,298/2,308 against
a dollar from a close of 2,295/2,305 a week earlier.
"We expect next week the currency (shilling) to hold steady
because of the support from end-month inflows. Companies and
other organisations will be buying shilling to meet their end of
the month obligations," a trader at one commercial bank in Dar
es Salaam said.
NIGERIA
Nigeria's naira NGN= is expected to be stable due to the
central bank's attempt to attract more foreign inflows after it
barred local investors from participating at its open market
Treasury auctions, traders said.
The naira touched a low of 362.24 on Thursday on the
over-the-counter market where it trades. It has been quoted at a
range of 361.50-362 this week, one trader said.
The currency was quoted at 307 on the official market,
supported by the central bank. Nigeria operates a multiple
currency regime.
The central bank on Wednesday restricted local investors
from participating in its Treasury bill auction in a bid to draw
more foreign interest to boost dollar liquidity and prop up the
naira. Domestic investors can buy bills on the secondary market.