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.