Shilling: Monetary Policy To The Rescue?

After a period of volatile trading the shilling appears to have found some stability of late, creeping higher from record low territory to TZS1,614.00/US$ at one point on August 31. Recent price action could indicate the formation of a double bottom, the confirmation of which would see the currency head to neckline resistance in the TZS1,550.00/US$ area. From a technical standpoint, further weakness would see the shilling test the lower band of its recent trading range in the TZS1,640.00/US$ area, a break of which would be a bearish signal.

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