Kenya’s shilling is forecast to ease against the dollar in the week to Thursday, while Zambia’s kwacha will strengthen, traders said.
KENYA
Kenya’s shilling is expected to weaken due to increased dollar demand from oil and manufacturing companies.
Commercial banks quoted the shilling at 100.60/70 to the dollar, compared with last Thursday’s close of 100.65/85.
“We expect end-of-month demand and we should see the dollar strengthening. (It is) normally oil importers and manufacturing, general merchant traders coming in,” a trader at one commercial bank said.
ZAMBIA
The kwacha is likely to firm next week as companies convert dollars in preparation for the payment of salaries and other end-of-month obligations.
At 1047 GMT on Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 10.0750 per dollar, up from a close of 10.1800 a week ago.
“We expect the local unit to continue with its appreciating trend and see support at USD/ZMW 9.990, with resistance at 10.050,” the local branch of South Africa’s First National Bank (FNB) said in a note on Thursday.
NIGERIA
The naira is seen unchanged next week supported by central bank interventions, traders said.
Trading has been quiet as the little quantity of hard currency sold by local exporters is unable to quell demand, traders said. Most importers have been bidding for dollars repeatedly to try to fill their request.
The naira has been quoted as weak as 364 per dollar for investors this week after trading within a range of 362 to 363. On the official market, supported by the central bank, it was quoted at 306.10.
GHANA
Ghana’s cedi is seen flat after marginal recovery this week from previous losses against the dollar as global pressures taper, analysts said.
The local unit had been under pressure mainly on emerging market headwinds, touching new lows. It was trading at 4.85 to the dollar by mid-morning on Thursday compared to 4.88 a week ago.
Currency analyst Raphael Adubila projected that the cedi would remain flat as it seemed to have adjusted to the external pressures from foreign investors who were moving funds to safer markets. Reuters
