currencies to be stable@
NAIROBI, Nov 30 (Reuters) - The Kenyan and Ugandan shillings are forecast to firm against the dollar in the next week to Thursday, while Zambia's and Nigeria's currencies are expected to hold steady, traders said.
The Kenyan shilling could strengthen against the
dollar in the coming week due to a rally in selected stocks at the Nairobi securities exchange attracting offshore investors, traders said. Commercial banks quoted the shilling at 103.00/20 per dollar, compared with 103.25/45 at last Thursday's close. "We are seeing an uptick in activity from foreign buyers helping the shilling," said a trader from a commercial bank.
The Ugandan shilling is expected to strengthen
moderately over the next few days, underpinned by dollar inflows from non-government organisations doing conversions to clear end-of-year obligations. Commercial banks quoted the shilling at 3,627/3,637, compared to last Thursday's close of 3,630/3,640. "I think NGOs (non-governmental organisations) will be doing conversions to meet any outstanding obligations for the year," said David Bagambe, trader at Diamond Trust Bank Uganda.
The kwacha is expected to remain range-bound
following a drop in dollar demand as market players hold on to the local currency in anticipation of lower rates. Commercial banks quoted the currency of Africa's second-largest copper producer at 10.0800 per dollar, almost the same as a close of 10.0850 a week ago. "In the interim, a balance seems to have been established around current levels. The range of 10.000-10.200 looks likely to hold for the remainder of the year," the local branch of South Africa's First National Bank (FNB) said in a note.
The naira is seen stable on the spot market,
supported by investor inflows and almost daily interventions by the central bank, traders said Volumes on the investor window, Nigerias main tradable market traded $218.66 million on Wednesday. Trades have been consistent on the market for months, helping the currency hold up at around 360 naira per dollar. Nigeria has at least six exchange rates which it has used to mask pressure on the currency. Traders expect the naira to hold up across its other exchange rates next week hovering at around 305 naira on the interbank market supported by central bank.
(Reporting by John Ndiso, Chris Mfula, Elias Biryabaremaand Chijioke Ohuocha; Compiled by George Obulutsa, Editing by WIlliam Maclean)