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Tanzania Shilling sinks to four months low‏

Tanzania Shilling sinks to four months low‏
THE shilling has sunk to four months low last week following heavy demand of US dollars from energy and manufacturing sectors.

The shilling crossed that level in this May.

The national microfinance bank said the market closed last Friday around 2,148/2,208 levels following mounting pressure from importers.

“Continued dollar demand from retailers and manufactures weighed on the local currency (Friday’s) volatile trading session” NMB said in e-Market report.

Another bank has it that the shilling was still under pressure from heavy demands from the energy and manufacturing sectors for the dollar.

“The local currency closed last week another 4 shillings weaker at the levels of 2179/2199 against the greenback,” CRDB bank said.

While Tanzania shilling nose dived deeper, its counterpart was unchanged last Friday, with traders expecting it to trade in tight range through the session.

At 0715 GMT, commercial banks posted the shilling at 103.00/10 to the dollar, unchanged from Thursday’s close.

“There has been no change overnight, it’s a dead market,” said a trader at one Nairobi-based commercial bank. “We expect trading between 103/- and 103/20 all day.”

He added the Kenya shilling, down about 14 per cent against the dollar this year, was unlikely to strengthen much as some companies had orders to buy dollars as soon as the local currency dipped below the 103/- level.

Both shillings may have been affected negatively after the dollar pulled away from seven-week lows on Friday, after better-than expected US inflation data kept alive bets the Federal Reserve would raise interest rates this year, and as expectations grew for more euro zone easing.

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Posted by on October 20, 2015 in Business News, Finance, Tanzania News

 

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Shilling Posts Modest Gain‏

THE shilling made a quick last-minute u-turn seen as the start of a new strengthening trend as the market approaches end of the month.

The shilling has the trend of appreciating at the end of the month when its demand swells due to corporates’ end of the month monetary obligations

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The local currency, according to CRDB Bank market highlight report, closed the weekend session stronger against the US dollar at 2,145/2,185 levels.

On Monday last week, the shilling was trading at 2,159/2,199 against the greenback.

The bank said the shilling made a fast last-minute turnaround at the end of yesterday’s trading session, with significant appreciation.

“This seems to be the start of a new strengthening trend as we head towards the end of the month,” CRDB said.

Another bank, National Microfinance Bank (NMB) eMarket report shows that the shilling rose significantly mid last week backed by improved greenback inflows in the interbank foreign exchange market.

“Further,” the eMarket said, strengthening is likely if the inflows will endure towards month/quarter end”.

However, since the beginning of this month the shilling lost by some 25/- against the US dollar close the yesterday inter bank forex market at 2,170/-.

In July, the Bank of Tanzania participated in the market for liquidity management, selling 197.4 million US dollars compared with 117.8 million US dollars sold in the preceding month.

On the world market the US dollar dropped against most major currencies mid last week as investors were awaiting the closely-watched Federal Reserve’s meeting statement due Thursday.

The euro rose to 1.1287 dollars from 1.1278 dollars in the previous session, in New York while sterling hit a three-week high against the dollar on Thursday after data showed British retail sales edged up in August, with investors focusing on the possibility of the first U.S. interest rate rise in almost a decade.

 
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Posted by on September 22, 2015 in Business News, Tanzania News

 

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