WEEKAHEAD-AFRICA-FX-Kenya, Uganda units may edge down, Tanzania shilling steady

Commercial banks quoted the shilling at 2,317/2,327 on Thursday compared with 2,316/2,326 at last week's close. "We expect the shilling to remain steady in the coming days as dollar supply continues to match demand," said one forex trader.

Kenya's shilling is seen edging lower against the dollar in the week to next Thursday while its Ugandan counterpart is also seen struggling due to typical end-of-the-month demand. KENYA Kenya's shilling is expected to continue edging lower due to strong dollar demand from fuel importers and other sectors, while dollar supplies from tourism and remittances remain muted.

Commercial banks quoted the shilling at 115.45/65 per dollar, compared with last Thursday's close of 115.30/50. "The fundamentals point to a stronger dollar. The shilling will continue to see pressure for the next week," a trader at one commercial bank said. ZAMBIA The kwacha is likely to hold steady against the dollar mostly due to subdued demand for hard currency.

On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 17.4000 per dollar, the same level as at the close of business a week ago. "The local unit is expected to maintain a stable trend against the greenback as the market remains relatively liquid and demand for the hard currency remains moderate as many buyers of forex anticipate lower levels," Access Bank said in a note.

UGANDA The Ugandan shilling is seen trading with a weakening tone in the next few days, undercut by typical month-end demand from manufacturers and energy importers. At 1033 GMT commercial banks quoted the shilling at 3,525/3,535, compared with last Thursday's close of 3,515/3,525.

"Firms from sectors like manufacturing and energy usually exert higher demand around the end of the month so we anticipate that dynamic in the coming days," said a trader at one commercial bank. He said the shilling would likely trade around 3,530-3,550 in the coming days.

TANZANIA Tanzania's shilling is expected to hold steady next week as dollar demand from oil marketing companies and manufacturers matches the inflows from agricultural exports. Commercial banks quoted the shilling at 2,317/2,327 on Thursday compared with 2,316/2,326 at last week's close.

"We expect the shilling to remain steady in the coming days as dollar supply continues to match demand," said one forex trader.

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