Kenya,Tanzania currencies ease vs dlr,Uganda firms

NAIROBI, June 18 (Reuters) - The Kenyan and Tanzanian shillings eased against the dollar in the week to Wednesday while the Ugandan currency firmed, dealers said.

KENYA

The Kenya shilling KES= eased slightly against the dollar during the week, thanks to foreign investors retrieving money after massive over-subscription for shares in mobile phone firm Safaricom's initial public offering.

At 0930 GMT commercial banks posted the unit at 64.35/55 compared with last Wednesday's closing level of 64.20/30.

Traders said the shilling hit a two-month low of 65.10/20 against the U.S currency in Friday's session.

They attributed the fall to offshore investors who participated in the just-concluded flotation of mobile phone firm Safaricom (SCOM.NR) recouping funds in dollars.

"The repatriation of refunds from the Safaricom IPO put the pressure on the shilling," said a dealer at Barclays Bank.

Oil importers were also in the market for dollars, adding to the shilling's fall, dealers said.

The local unit recovered some of its losses on Monday, with dealers saying its weakening against the dollar had been overdone.

"There was a corrective move as the fall of the shilling was a bit drastic," said Solomon Alubala, a dealer at Middle East Bank.

The Barclays dealer added pressure on the shilling would continue as dollar inflows from tourism were minimal.

Dealers said they expected the shilling to trade in the 63.80-65.50 range against the dollar in the coming week.

UGANDA

The Uganda shilling UGX= maintained its rally against the dollar during the week with steady inflows from offshore investors against muted corporate demand for the U.S. currency, dealers said.

Commercial banks posted the shilling at 1,565/1,570 to the dollar compared with 1,585/1,590 a week ago.

"We have seen some inflows from buyers interested in government securities but on the whole, the market is quiet," said Denis Mushabe Mashanyu, a dealer at Standard Chartered Bank Uganda.

Dealers said corporate demand was absent as most buyers concentrated on tax payments.

The shilling is expected to trade within the 1,550-1,570 range in coming days, dealers said.

TANZANIA

The Tanzania shilling TZS= eased against the dollar, undermined by commercial banks squaring their short dollar positions but trade was otherwise quiet, dealers said.

Commercial banks quoted the shilling at 1,193/1,203 to the dollar, compared with last Wednesday's close of 1,180/1,185.

Dealers said they had expected the shilling to strengthen during the week helped by export flows from the cotton and tourism sector, but that did not happen.

"It seems that in the previous week people were short, now they are covering their positions, though we expected the shilling to appreciate because of the proceeds from the cotton sector and tourism," said Gilbert Mwandimila, treasury manager at Bank of Africa Tanzania.

Dealers said the local unit moved from the 1,175 level it was at yesterday to its current levels.

"I don't see significant demand in the market. It's only interbank people who are buying, selling," said Samwel Marco, a dealer at Stanbic Bank Tanzania.

The shilling is expected to trade in the 1,180-1,200 range against the U.S. currency in coming days, dealers said.

(Reporting by Duncan Miriri in Nairobi, George Obulutsa in Dar es Salaam and Susan Nabadda in Kampala)