Shilling remains struggling against dollar

Image result for shilling tanzaniaThe shilling opened the week slightly stronger after trading at the levels of 1800/1840 and is expected to trade range-bound in the coming days supported by some inflows from the corporate sector.

The local currency has been gradually weakening against the dollar in the recent months due to contracted dollar inflows from export and tourism sectors.

According to CRDB financial market highlights, the shilling on Monday opened at the levels of 1800/1840 to the dollar and closed at 1804/1844.

"Though we anticipate that the shilling might strengthen as we approach end of the week amid end month inflows from the corporate sector," stated the report.

Also on Monday, the interbank money market volume was recorded at 9.5bn/- with the shilling exchanged at the levels of between 6.00 per cent and 5.00 per cent.

Kenya's shilling held steady in early trade on Monday amid thin volumes, and was seen trading rangebound in coming days supported by a bond sale.

The shilling has been gradually weakening against the dollar over the past 12 months, mainly due to Kenya's dented tourism sector where hard currency inflows have dwindled in the wake of Islamist attacks that scared off many visitors.

Traders said the shilling was forecast to trade in the 91.25 and 91.85 range against the dollar in the coming days.

The Ugandan shilling strengthened on Monday on anticipation that a credit upgrade by Fitch could spur dollar inflows from offshore investors seeking Ugandan debt.

At 0849 GMT commercial banks quoted the shilling at 2,855/2,865, stronger than Friday's close of 2,865/2,875.
Source: Daily News, reported from Dar es Salaam, Tanzania
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