NAIROBI, Oct 10 (Reuters) - Uganda's shilling was seen
weakening next week while traders said the Tanzanian and Zambian
currencies would likely hold their ground.
UGANDA
The Ugandan shilling will likely weaken further next week,
undermined by negative sentiment after the central bank trimmed
its policy rate by 100 basis points on Monday, traders said.
Commercial banks quoted the shilling at 3,690/3,700 against
the U.S. dollar on Thursday, weaker than last Thursday's close
of 3,675/3,685.
"We have generally seen the shilling bend on the weakening
side as the rate move feeds a negative sentiment and I think
that knee-jerk reaction will go on for some time," said a trader
at a leading commercial bank.
The Bank of Uganda cut its policy rate to 9% from 10% on
Monday, saying it needed to stimulate growth amid low inflation.
The Tanzanian shilling TZS= will likely hold its ground in
coming weeks, underpinned by the start of the cashew season,
traders said.
On Thursday commercial banks quoted the shilling at
2,294/2,304 against the dollar, nearly the same level as a week
"The shilling will be more stable next week and even
throughout the month to November because the cashew nut season
is starting," said a forex trader from a commercial bank in Dar
es Salaam.
ZAMBIA
The Kwacha ZMW= was quoted at 13.1300 per dollar on
Thursday, slightly stronger than the close of 13.1400 a week
"The kwacha seems to have established a new equilibrium
level above $1/K13.000 and will likely trade above this level in
the medium to long term," Cavmont Bank said in a note.