Foreign Currency

WEEKAHEAD-AFRICA-FX-Kenyan currency could strengthen, Nigeria’s seen range-bound


KAMPALA, March 28 (Reuters)Kenya’s shilling is expected to firm against the dollar in the next week to Thursday, while Uganda’s shilling could be broadly steady and Nigeria’s naira range-bound, traders said.

KENYA

Kenya’s shilling KES= is expected to extend its gains in the coming week on the back of robust foreign-exchange supply from diaspora remittances and tea exporters.

Commercial banks quoted the shilling at 131.00/132.00 per dollar, compared with last Thursday’s closing rate of 132.00/133.00.

The shilling is up about 19% against the dollar this year, according to LSEG data.

NIGERIA

Nigeria’s naira could trade within a range of between 1,200 and 1,300 per dollar, supported by inflows from a Treasury-bill auction and central bank foreign-currency sales to bureau de change operators.

The naira NGN=D1 traded at 1,295 to the dollar in early deals on Thursday, compared with a closing rate of 1,315 naira a week ago. It sold at 1,310 naira on the parallel market NGNP=.

“It could stay at around 1,200 or 1,300 naira … next week,” one trader said. “There is more support for the currency when there is an auction.”

UGANDA

Uganda’s shilling UGX= is seen trading stable as appetite for dollars is curtailed by a short trading week.

Commercial banks quoted the shilling at 3,875/3,885 to the U.S. currency, compared with last Thursday’s close of 3,880/3,890.

Markets will be closed in Uganda on Friday and Monday for Easter holidays.

“Demand will mostly be thin and scattered, with the (local) unit trading largely stable,” one trader said.

(Reporting by Elias Biryabarema, Hereward Holland and Chijioke Ohuocha; Editing by George Obulutsa)

((nairobi.newsroom@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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