July 4, 2019 / 1:34 PM / 3 months ago

WEEKAHEAD-AFRICA-FX-Kenyan shilling to firm, Zambia kwacha to hold steady

KAMPALA, July 4 (Reuters) - Kenya’s shilling is forecast to strengthen in the next week to Thursday, while Zambia’s kwacha will be stable, traders said.

KENYA

The Kenyan shilling is seen gaining ground in the coming week from Thursday’s 102.15/35, as commercial banks unwind long dollar positions amid reduced dollar demand from oil importers, traders said.

“During beginning of the month, dollar demand is normally reduced,” said a senior trader from one commercial bank.

TANZANIA

Tanzania’s shilling is expected to hold steady due to dollar demand from the energy and manufacturing sectors being met by supply from agriculture and mining sectors.

Commercial banks quoted the shilling on Thursday at 2,293/2,303 per dollar compared with last Thursday’s close of 2,294/2,304.

“We expect more inflows from the mining sector, agriculture exports and a bit from tourism, and the main drivers in the demand side will be the energy and manufacturing sectors,” a senior trader at one commercial bank in Dar es Salaam said.

ZAMBIA

The kwacha is expected to remain range-bound against the dollar in the coming week, traders said.

On Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 12.8000 per dollar from a close of 12.9000 a week ago.

“The local unit continues to hold its own against the greenback, having seemingly found a comfort level below 13.00,” the local branch of South Africa’s First National Bank (FNB) said in a note. (Reporting by John Ndiso, Nuzulack Dausen and Chris Mfula; Compiled by George Obulutsa; Editing by Hugh Lawson)

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