Nairobi — The currencies of Kenya, Ghana, Uganda and Zambia are expected to be largely steady against the dollar in the next week to Thursday, traders said.
KENYA
Kenya’s shilling is forecast to remain in tight ranges, as it has done since last year.
The shilling traded at 129.00/50 to the U.S. currency on Thursday, the same level as at last Thursday’s close.
GHANA
Ghana’s cedi is expected to be broadly stable as increased dollar demand has brought a recent rally to a halt.
LSEG data showed the cedi trading at 10.20 to the dollar on Thursday, unchanged from last Thursday.
“The cedi’s strong rally paused in the last week as demand for the greenback ramped up considerably. The pair has remained largely stable, however, as the central bank has upped its support,” said Sedem Dornoo, a senior trader at Absa Bank Ghana.
“We expect the pair to remain range-bound as the central bank continues to help clear the demand buildup through its daily auctions,” he added.
UGANDA
Uganda’s shilling is seen little changed as traders wait for next week’s budget.
Commercial banks quoted the shilling at 3,631/3,641 to the dollar, compared to last Thursday’s close of 3,630/3,640.
“Ahead of (the) budget reading we normally see a sharp drop in activity because some players decide to play a waiting game to see what’s in the budget,” a trader said.
ZAMBIA
Zambia’s kwacha could draw support from lower oil prices and upcoming tax payments.
On Thursday the kwacha was quoted at 26.35 from 26.90 a week ago. “There was a reduction in the price of diesel last week. Companies will also be paying Pay As You Earn and Withholding tax next week,” one analyst said.
*Elias Biryabarema, Hereward Holland, Chris Mfula and Christian Akorlie; editing: Alexander Winning – Reuters
