Market News

DAKAR, March 9 (Reuters) - The Kenyan and Zambian currencies are expected to weaken against the dollar in the coming week, while the currencies of Nigeria, Ghana, Uganda and Tanzania are set to hold steady.

KENYA

Kenya's shilling KES= is expected to weaken, driven by increased demand for dollars, especially from oil retailing companies.

Commercial banks quoted the shilling at 128.80/129.00 per dollar, compared with last Thursday's close of 127.30/50.

During Thursday's session, the shilling touched a new all-time low of 128.90/129.10 per dollar, Refinitiv data showed.

"There is a bias towards a weaker currency. Demand is still quite high. Oil (companies) are the biggest consumers," a trader at one commercial bank said.

ZAMBIA

Zambia's kwacha ZMW= is likely to continue weakening against the dollar next week as rising demand for hard currency continues to outweigh supply.

On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 20.4000, down from 20.1400 a week ago.

"The local currency is expected to remain broadly weak going into next week," one commercial bank trader said.

NIGERIA

Nigeria's naira NGNP= is seen broadly stable on the parallel market after a court ordered that new banknotes should circulate with old notes till year-end to ease cash shortages, traders said.

The naira was quoted at 753 to the dollar on the parallel market on Thursday, compared with 755 at last Thursday's close. It traded within a range of 460 to 462 on the official market.

"Against the backdrop of continued pent-up naira demand, the currency appreciated against the dollar. As the court's order takes effect and notes begin re-circulating, we expect the naira to decline gradually," foreign exchange trading firm AZA Finance said in a note.

GHANA

Ghana's cedi GHS= is expected to remain steady after a week of gains driven by improved forex liquidity and a low corporate demand for dollars.

Refinitiv Eikon data showed the cedi trading at 12.0000 to the dollar on Thursday, compared to 12.6000 at last Thursday's close.

"Cedi posted further gains week-on-week against the dollar, driven by continued slowdown in corporate USD demand amid sustained supply," said Chris Nettey, a trader at Stanbic.

He added that the currency would have to hold firm at current levels in the coming week to confirm a downward trajectory in rates.

UGANDA

The Ugandan shilling UGX= is seen trading in a stable range with demand remaining broadly subdued as large firms reserve some of their local currency holdings for mid-month tax obligations, traders said.

At 1007 GMT commercial banks quoted the shilling at 3,705/3,715, unchanged from last Thursday's close.

"Mid-month taxes are coming so I would anticipate that generally we'll see a bit of a slump in dollar appetite," said a trader at one commercial bank.

The local unit, he said, will likely swing in the 3,690-3,720 range against the dollar in the coming week.

TANZANIA

Tanzania's shilling TZS= is expected to hold steady next week as inflows from exports and the retail market have eased demand for dollars from most sectors.

Commercial banks quoted the shilling at 2,335/2,345 against the dollar on Thursday, unchanged from the last week's close.

"The Bank of Tanzania has continued to intervene in the FX market, selling $124 million into the market during the first half of the 2022/23 financial year," a trader in one of Tanzania's forex trading firms said.

"Given this central bank support, we expect the shilling to continue trading around current levels over the coming week," the trader said.

(Reporting by George Obulutsa, Chris Mfula, Chijioke Ohuocha, Christian Akorlie, Elias Biryabarema, Nuzulack Dausen; Compiled by Sofia Christensen)