DAR ES SALAAM, Aug 20 (Reuters) - Tanzania's shilling is
expected to gain ground against the U.S. dollar in the next
week, while Kenya's will weaken, traders said.
KENYA
The Kenyan shilling KES= is seen weakening due to dollar
demand from merchant importers and firms in the energy sector,
which normally increases in the last days of the month.
Commercial banks quoted the shilling at 108.00/20 compared
with last Thursday's close of 108.25/45. The shilling hit an
all-time low on Wednesday of 108.50/70.
"We're going into end of month period, (dollar) demand will
be strong while there are no inflows in the market ... so I
expect the shilling to weaken," said a trader at one of the
commercial banks.
UGANDA
The Ugandan shilling UGX= is expected to hold steady, with
commercial banks expecting a surge of inflows from charities and
exporters of commodities that traditionally occurs toward
month-end.
Commercial banks quoted the shilling at 3,675/3,685,
compared with last Thursday's close of 3,670/3,680.
"If the traditional month-end flows from NGOs, tea, coffee
and other sources are healthy I see the unit holding its ground
around current levels," said a trader at one commercial bank.
Most charities receive their money in dollars and convert it
to pay local expenses.
TANZANIA
Tanzania's Shilling TZS= is expected to gain due to
increased dollar inflows from farm exports and tourism.
Commercial banks quoted the shilling at 2,315/2,325 per
dollar, from 2,320/2,330 at last Thursday's close.
"We foresee the shilling strengthening slightly in the
coming week on increased inflows from agricultural exports and
recovery in tourism," Terry Karanja, a treasury associate at
AZA, a Nairobi-based FX trading firm said in a market report.