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
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.