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.