(Corrects naira exchange rate in final section)
NAIROBI, June 13 (Reuters) – Kenyan and Zambian currencies are likely come under pressure next week as those of Ugandan and Tanzanian firm. Nigeria’s currency should remain stable.
The Kenyan shilling is seen under pressure against the U.S. dollar in the coming week due to demand from oil importers amid excess liquidity in the local money market, traders said.
Commercial banks quoted the shilling at 101.40/60 per dollar, compared with 101.25/45 at last Thursday’s close.
“We have a lot of liquidity on the money market side,” said a senior trader from one commercial bank.
The kwacha is expected to make marginal losses versus the U.S. dollar next week as hard currency inflows from companies that were paying taxes dry up.
On Thursday, commercial banks quoted the currency of Africa’s second-largest copper producer at 13.0650 per dollar, up from a close of 13.2000 per dollar a week ago.
“It will most likely go back to the established levels somewhere slightly weaker than the current level,” independent financial analyst Maambo Hamaundu said.
The Ugandan shilling is seen trading in a firming position against the U.S. dollar as mid-month tax payments by corporate firms limit their demand for hard currency.
At 0940 GMT commercial banks quoted the shilling at 3,737/3,747, compared to last Thursday’s close of 3,765/3,775.
“Condering we’ll be having mid-month tax payments and some offshore inflows might also come in, the shilling will rally,” said Faisal Bukenya, an independent foreign exchange trader.
Tanzania’s shilling is will gain next week as corporates sell U.S. dollars to meet financial obligations including taxes.
On Thursday, commercial banks quoted the Shilling at 2,295 per dollar, the same level at which it closed a week ago.
“We expect the shilling to appreciate next week to 2,290/2,300 levels because most of corporates will be selling dollars to meet different obligations,” one commercial bank trader said.
The naira is seen stable against the U.S. dollar next week supported by global oil prices and foreign investors buying the local currency to participate in a treasury bill auction.
On Thursday, the naira firmed to 359.80 per dollar from 360.50. The currency was quoted at 360 at exchange bureaus and 306.95 on the official market, thanks to central bank support.
Commercial bank traders said foreign investors were still buying local bills to lock in yields with global oil prices providing support for the currency at around $60. (Reporting by John Ndiso, Chris Mfula, Elias Biryabarema, Nuzulack Dausen and Chijioke Ohuocha; Compiled by Chris Mfula; Editing by Alison Williams)