The Kenyan shilling is expected to firm this week after a court upheld the re-election of President Uhuru Kenyatta. Zambia’s kwacha is seen bearish due to scant dollar supply.
Ghana
Ghana’s cedi is expected to remain on the back foot on unmet dollar demand by businesses for their end-of-year imports amid speculative buying by others, an analyst said.
The currency began slipping this month on a seasonal surge in demand for dollars. It was trading at 4.6400 to the dollar at 1140 GMT on Thursday, down from 4.5550 a week before.
“The cedi’s recent sharp depreciation is expected to extend as importers continue to buy the dollar in anticipation of a further surge in rates,” said Biggles Joseph Amponsah, head of treasury at Northstar Home Finance Limited in Accra.
Kenya
The Kenyan shilling is seen firming against the dollar in the near term after a court upheld the re-election of President Uhuru Kenyatta in last month’s repeat vote, ending months of political uncertainty, traders said.
At 0718 GMT on Thursday, commercial banks quoted the shilling at 103.05/15 per dollar, compared with 103.50/70 at the previous Thursday’s close.
“The fundamentals suggest a possible rally against end-month demand with the president being sworn in,” said a trader from a Nairobi-based commercial bank.
Zambia
The kwacha is likely to remain bearish against the dollar this week due to reduced hard currency inflows triggered by delays in concluding an aid programme with the International Monetary Fund.
At 0908 GMT on Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 10.0850 per dollar from 10.0000 at the close a week before.
“The local unit is expected to continue trading on the back foot as long as the market does not see any pick in supply of dollars,” Zambia National Commercial Bank said in a note.
Uganda
The Ugandan shilling is seen weakening in the coming days, undermined by excess liquidity in the interbank market and demand from merchandise importers.
At 0809 GMT, commercial banks quoted the shilling at 3,630/3,640, unchanged from the preceding Thursday’s close.
A trader at a leading commercial bank said the interbank market was awash with local currency liquidity and expected some players “to take advantage and beef up their (dollar) positions.” – REUTERS
