Market News

ACCRA, July 23 (Reuters) — The currencies of Ghana, Nigeria and Uganda are expected to weaken against the U.S. dollar over the coming week, while Kenya's shilling and Zambia's kwacha are forecast to remain broadly stable, according to traders.

GHANA
Ghana's cedi is expected to remain under pressure as strong corporate demand for U.S. dollars continues to outstrip supply. LSEG data showed the cedi trading at 11.61 per dollar on Thursday, compared with 11.50 a week earlier. Traders cited heavy foreign exchange demand from the energy and commerce sectors, while bids at the central bank's FX auction exceeded supply by more than 3.5 times.

NIGERIA
Nigeria's naira is expected to weaken due to increased foreign currency demand from fuel importers building inventories. The naira traded at 1,368 per dollar on the official market on Thursday, compared with 1,383 a week earlier, while the parallel market rate stood at around 1,420 per dollar.

UGANDA
Uganda's shilling is forecast to extend recent losses as renewed conflict in the Middle East pushes global crude oil prices higher. Commercial banks quoted the currency at 3,735/3,745 per dollar compared with 3,685/3,695 a week earlier. Traders expect the shilling to weaken toward 3,750 unless geopolitical tensions ease.

ZAMBIA
Zambia's kwacha is expected to remain relatively stable, supported by firm copper prices. Commercial banks quoted the currency at 18.54 per dollar compared with 18.44 a week earlier. Analysts said strong copper prices should continue to support the currency.

KENYA
Kenya's shilling is expected to maintain its long-running stability. Commercial banks quoted the shilling at 129.40/60 per dollar, unchanged from the previous week.