Uganda’s shilling weaker, Kenya’s under pressure

The latest share prices sit on a digital display screen at the Nairobi Securities Exchange Ltd. (NSE) in Nairobi, Kenya, on Tuesday, July 21, 2015. Kenya is a major technology hub and a key player in one of the most dynamic economic regions on the continent. Photographer: Waldo Swiegers/Bloomberg via Getty Images
Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)

The Ugandan shilling is expected to weaken on demand from retailers who need to pay for goods.

At 0949 GMT Thursday, 29th August, commercial banks quoted the shilling at 3,683/3,693, compared with last Thursday’s close of 3,683/3,693.

“Typically from around September we tend to see elevated demand (for dollars) from importers of goods like textiles, electronics, leather products and others,” said an independent foreign exchange trader in Kampala.

He said the shilling would trade between 3,685 and 3,710, probably towards the weaker side.

The Kenyan shilling will also be under pressure in the coming week amid demand for dollars from energy and manufacturing companies, traders said.

“The driving factor would be liquidity and end of month demand … we’ve seen the regulator intervening aggressively on the money market side,” said a senior trader from one commercial bank.

Meanwhile,Tanzania’s shilling is expected to gain as inflows increase from tourism and agriculture.

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