SHILLING has remained stable against the US dollar in the last four months, according to financial analysts. It traded around 2,230/- margin against the greenback since February and it has been predicted that the pair will hold on the same levels.
CRDB Bank said its daily Market
Highlights the pair shilling/US dollar stabilised due to the matching
demand and supply. “The market has seen the US dollars stabilise due to
matching levels of demand and supply,” CRDB said in its daily market
report.
National Microfinance Bank (NMB)said the
local currency traded flat against dollar on the last day of the last
week due to "moderate demand”. “We observed moderate demand from
corporates coupled with flows from agriculture export,” NMB said in
eMarket report.
Standard Chartered Bank said the
currency pair remained stable with demand on the dollar side and the
future paints a low volatility. “Low volatility expected,” Standard
Chartered said in a report.
Nevertheless, shilling lost 3.0 per cent
to the greenback in the last six months. The local currency opened the
year at 2,175/- but closed at 2240/- last Friday.
“In the fixed income and money market,
we foresee rates to rebound as investors building up their shilling
positions for quarter end tax payments,” Tanzania Securities said in a
weekly market report.
Shilling stability was also due to
dipping of US dollars as global traders await signals on more Federal
Reserve System—the US central bank—hikes. “The dollar dipped to a
four-day low against major currencies on Friday and the euro rose on the
recent raft of robust data.
“Traders were looking to US inflation
data due next week to provide clues on the US Federal Reserve's likely
interest rate policy,” NMB report pointed out. Historically, the
shilling reached an all-time high of 2260/80 in June 2015 and a record
low of 1014/30 in December of 2004.
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