Reuters reported that Lower copper prices look set to keep the Zambian kwacha on the defensive next week and Kenya's shilling may also be under pressure if the central bank keeps buying foreign exchange and on worries about eurozone debt crisis. Zambia The Zambian kwacha ZMK is expected to remain under pressure from the dollar due to higher demand for the United States currency and lower copper prices, the country's main export. Commercial banks quoted the kwacha at 4,730 compared with last Wednesday's close of 4,700. Mr Mudenda Syamujaye Cavmont Bank country treasurer said that the currency of Africa's largest copper producer should remain bearish. Any increased demand for the dollar is likely to exert some pressure on the already bearish kwacha. A break towards ZMK 4,800 is likely. Uganda Uganda's shilling UGX is seen recouping some of its losses thanks to waning corporate demand for dollars as well as flows of the US currency from aid agencies and exporters. Commercial banks posted the shilling at 2,290 to 2,295 per dollar compared with 2,283 to 2,288 at last Thursday's close. Mr Lucas Ochieng head of treasury at Orient Bank said that "I think we will see a slight appreciation to 2,280 to 2,290 levels this week because most of the dollar demand has already been met. Some dollar flows from the commodity sector will support the shilling.” Mr Ochieng said that the Central bank had been absent in the market this week. It sold a total of USD 30 million into the market in the last 3 weeks to stabilize the shilling. Traders said that dollar inflows will come from development agencies that will be closing books towards year end. Most aid agencies will be winding up their financial budgets so we are likely to see some more dollar flows which will give some buffer to the local unit. The market will also watch global currency developments for further direction.

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