Shilling holds steady

The shilling opened the week on a stable note, thanks to corporate customers selling US dollars to settle their end-month obligations.

The pair—shilling and dollar—closed the market at the levels of 1613/1623 which was the same as Friday’s close of 1613/1623.

CRDB bank’s market highlights the local currency was stable against the US Dollar on Monday trading session, as the result of corporate customers selling dollar in order to pay tax.

“Traders believe the shilling will appreciate because of end of month inflows,” the bank said in a statement yesterday. National Microfinance Bank (NMB) said on its e-Market that the shilling slightly strengthened against the greenback to close at 1614/1626.

“...primarily due to many corporate buying TZS to settle their month-end obligations,” NMB said. Tanzania Securities, brokerage firm, daily report shows that the pair, shilling/dollar, ended the Monday trading flat.

”The shilling remained stable against the dollar to trade at a range of between 1,580/- and 1,660/-,” Tanzania Securities said. On other hand, Standard Chartered Bank said the shilling started the week on the wrong foot after showing the signs of sliding as the market was faintly overwhelmed by demand.

However, StanChart said, “supply is expected to be maintained as corporate need shilling for their obligations. We expect low and medium volatility.” Standard Chartered bank quoted the shilling at 1,628/- at the close of the market on Monday.

The Bank of Tanzania indicative rate for dollar against shilling ranges between 1,604/- and 1,620/-. Meanwhile, the Kenyan shilling was steady on Monday as dollar demand from importers was offset by investors lured to high-yielding government debt, while on the stock market sugar maker Mumias led shares lower.

“The shilling was at 87.50/70 to the dollar at market close, barely changed from Friday's close of 87.55/75,” CRDB report shows. Internationally, the dollar slipped against the yen on Monday, hurt by a dip in US bond yields after disappointing housing data on Friday raised uncertainty about an early withdrawal of stimulus by the Federal Reserve.

“In trading thinned by a holiday in London, the dollar slipped 0.15 per cent to 98.58 yen, below Friday's high of 99.15 yen, the US currency's highest level since August 5,” CRDB’s report shows.
Source: Daily News, reported from Dar es Salaam, Tanzania
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