DAR ES SALAAM, Feb 13 (Reuters) - Kenya’s shilling is expected to weaken against the dollar in the next week, while Uganda’s will be stable, traders said.
The Kenyan shilling is seen under pressure in the coming week due to increased dollar demand from merchandise importers and some multinational companies, traders said.
Commercial banks quoted the shilling at 100.40/60 per dollar, compared with 100.35/55 at last Thursday’s close.
“As we go into dividend payment period we might see the strengthening slow down,” said a senior trader from one commercial bank.
The Ugandan shilling was seen holding steady, with a central bank decision to maintain its key rate expected to fuel favourable market sentiment.
Commercial banks quoted the shilling at 3,664/3,674, compared with last Thursday’s close of 3,670/3,680.
“Most market players expected a (rate) hold which turned out the case so overall I don’t expect any major movement on either side of the market,” said a trader from a leading commercial bank.
On Thursday Bank of Uganda held its benchmark lending rate at 9%.
The Tanzanian shilling is expected to gain slightly due to reduced dollar demand from importers and an increase in inflows from non-governmental organisations.
Commercial banks quoted the shilling at 2,306/2,316 per dollar, the same level as last Thursday’s close.
“The shilling will gain slightly ... because there are many NGOs which are in pipeline selling dollars,” a trader at one commercial bank said.
“There is reduced pressure ... due to the slow demand for dollars because importers who import from China are not trading as much because of coronavirus ... this will stabilise the shilling.” (Reporting by John Ndiso,Elias Biryabarema and Nuzulack Dausen; compiled by George Obulutsa; Editing by Kirsten Donovan)