November 1, 2018 / 12:46 PM / 19 days ago

UPDATE 1-AFRICA-FX-Ugandan shilling to gain, Nigeria's naira to ease

 (Adds Nigeria naira)
    NAIROBI, Nov 1 (Reuters) - Kenya's shilling is forecast to
hold steady against the dollar in the next week to Thursday,
while Uganda's shilling will gain ground and Zambia's kwacha
will hold steady, traders said.
    
    KENYA
    The Kenyan shilling        is expected to remain stable
against the dollar, with market players eyeing shilling
liquidity in the money market as end-of-month dollar demand from
oil importers subsides, traders said. 
    Commercial banks quoted the shilling at 102.10/20 per
dollar, compared with 101.05/25 at last Thursday's close.
    "It's a factor of the liquidity in the money market after
end-month demand takes a backseat...The bigger picture shows a
stable shilling," said one senior commercial bank trader. 
    UGANDA
    The Ugandan shilling        is expected to gain in the
coming days on inflows from charities and exporters of coffee
and other commodities. 
    Commercial banks quoted the shilling at 3,735/3,745,
stronger than last Thursday's close of 3,755/3,765. 
    "Inflows from NGOs and commodity exporters usually
experience an uptick in November and early December," a trader
at one commercial bank said. He forecast the shilling would
oscillate around a 3,725-3,755 range in coming days. 
    
    NIGERIA
    Nigeria's naira        is expected to ease slightly as
investors purchase foreign currency to repatriate funds abroad,
following the maturity of $371 million worth of naira futures,
boosting dollar demand, traders said.
    The naira closed at 363.56 for investors on Wednesday. The
currency has seen few deals on Thursday as traders focus on the
purchase of open market treasury auction, traders said.
    Traders said investors have 20 days to repatriate funds
after the futures matured on Wednesday, which could weaken the
naira to the 364 level owing to increased demand.
    "A lot of people are looking for dollars, which will
increase demand and weaken the naira," one trader said.
    On the official market, the naira was quoted at 306.50 per
dollar.
 
    ZAMBIA
    The kwacha        is expected to remain range-bound next
week with market dynamics mainly controlled by supply and
demand. 
    Commercial banks quoted the currency of Africa's
second-largest copper producer at 11.8500 per dollar from
11.6500 a week ago.
    "We are unlikely to see any significant fluctuations. It
should remain within the 11.8-12.2 range," independent financial
analyst Maambo Hamaundu said.

    GHANA
    The cedi        could come under seasonal pressure as dollar
demand rises from corporate and commerce operators who need to
settle end-of-year import bills, analysts said.
    After touching new lows in September, the local unit
recovered against the dollar to rally 2 percent by the close of
October. It was trading at 4.8750 to the dollar by mid-morning
on Thursday, compared to 4.8500 a week ago.
    "Given that we expect increased commerce activities to close
the year, adequate supply of the greenback will be required to
keep the cedi table. Until that is done, we project the pair to
trade within the 4.86 to 4.88 range," currency analyst Raphael
Adubila said.    

 (Reporting by John Ndiso, Elias Biryabarema, Chris Mfula,
Chijioke Ohuocha and Kwasi Kpodo
Compiled by George Obulutsa
Editing by Mark Heinrich)
  
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