KAMPALA, Sept 26 (Reuters) - Kenya and Tanzania's shillings
and Zambia's kwacha are expected to be stable against the dollar
over the next week, traders said.
KENYA
The Kenyan shilling KES= is forecast to hold steady due to
tightening liquidity in the local money market and subsiding
end-month dollar demand from the energy sector, traders said.
Commercial banks quoted the shilling at 103.80/104.00 per
dollar, compared with 103.75/95 at last Thursday's close.
"Most of the demand is end-month driven ... the central bank
has been mopping aggressively," said a senior trader from one
commercial bank, referring to central bank open market
operations.
UGANDA
The Ugandan shilling UGX= is expected to weaken due to
increased dollar demand from oil importers.
Commercial banks quoted the shilling at 3,675/3,685,
compared with last Thursday's close of 3,670/3,680.
"There are signs of a pick-up in demand from importers, we
anticipate this demand to strengthen as the fourth quarter comes
around the corner," said a trader at a leading commercial bank.
TANZANIA
Tanzania's shilling TZS= is expected to be stable, with
dollar demand from the manufacturing and energy sectors being
met by supply from inflows from the mining sector and
agricultural exports.
Commercial banks quoted the shilling at 2,298/2,303,
compared with last Thursday's close 2,293/2,303.
"The shilling will remain stable with a high possibility of
gaining slightly because of inflows from mining, agriculture
exports and from tourism," said a trader at one commercial bank.
ZAMBIA
The kwacha ZMW= is expected to remain range-bound as
market players sell dollars to lock-in profits on recent gains.
On Thursday, commercial banks quoted the currency of Africa's
second-largest copper producer at 13.1750, from a close of
13.1700 a week ago.
"Current trends seem to indicate that the local unit will
trade between 13.000/13.250 in the short to medium-term,"
Cavmont Bank said in a note on Thursday.