NAIROBI, May 23 (Reuters) - The Kenyan shilling is expected
to weaken on the back of end-of-the-month dollar demand while
the Zambian kwacha's bullish run is set to continue.
KENYA
The Kenyan shilling KES= is seen under pressure against
the dollar in the coming week as merchandise and fuel importers
buy dollars to meet their end-of-month obligations, traders
said.
On Thursday commercial banks quoted the shilling at
101.20/40 per dollar, compared with 101.05/25 at last Thursday's
close.
"There is a pickup in demand (for dollars) as we approach
the end of month," said a senior trader from one commercial
bank.
TANZANIA
The Tanzanian shilling TZE= is expected to strengthen due
to anticipated inflows of dollars from exports of agricultural
commodities, especially cotton.
On Thursday commercial banks in Dar es Salaam quoted the
shilling at 2,295/2,305 against the U.S. dollar, broadly
unchanged from last Thursday.
"We expect the shilling to appreciate... due to the
anticipated cotton inflows as the season begins next week. If
the cotton season goes well as expected the shilling will
appreciate even further for a while," said a forex trader in Dar
es Salaam.
UGANDA
The Ugandan shilling UGX= is seen weakening over the next
few days, helped by hard currency demand from firms looking to
pay for shipments of raw materials for next month.
At 0956 GMT on Thursday commercial banks quoted the shilling
at 3,755/3,765, compared to last Thursday's close of
3,753/3,763.
A trader at a leading commercial bank said they expected
rising dollar demand from manufacturing companies toward the end
of the month to pay for next month's supply of raw materials.
"I see the shilling trading under some moderate pressure
because of this demand," he said.
ZAMBIA
The kwacha ZMW= is expected to continue to rebound against
the dollar as market players view its recent depreciation as
overdone.
On Thursday commercial banks quoted the currency of Africa's
second-largest copper producer at 13.1000 per dollar, up from a
close of 13.5950 a week ago.
"The depreciation of the kwacha seems to have been
exaggerated and mainly driven by sentiment. There now appears to
be a self-correction," one senior commercial bank trader said.