NAIROBI, July 11 (Reuters) - Kenyan and Tanzanian currencies are likely to come under pressure next week as Zambia’s holds firm.
The Kenyan shilling is likely to come under pressure against the U.S. dollar in the coming week as oil and merchandise importers increase their demand for hard currency.
Commercial banks quoted the shilling at 102.90/103.10 per dollar, compared with 102.50/70 at last Thursday’s close.
“We’re going to see a lot of demand, the importation of maize the government has agreed to and oil imports,” said a senior trader from one commercial bank.
The Tanzanian shilling is likely to weaken next week because of rising demand for U.S. dollars from importers.
Commercial banks quoted the shilling at 2,294/2,304, per dollar compared with last Thursday’s close of 2,293/2,303.
“We expect the shilling to slightly depreciate as we expect huge demand of dollars from importers in energy and manufacturing sectors,” a trader at one commercial bank said.
The kwacha is expected to hold firm against the U.S. dollar next week, supported by tight local currency liquidity and an increasing supply of hard currency.
On Thursday, the currency of Africa’s second-largest copper producer was trading at 12.5100 per dollar, up from a close of 12.8100 a week ago.
“Market liquidity is very tight and companies will be converting dollars to pay taxes due next Tuesday,” independent financial analyst Maambo Hamaundu said. (Reporting by John Ndiso, Nuzulack Dausen and Chris Mfula; Compiled by Chris Mfula; editing by Larry King)