The Ghana cedi gained ground against the dollar on Friday in the lead up to a 5-year bond auction at the end of the month and supported by perceptions of stronger economic prospects, traders said.
The cedi-dollar rate traded at 1.5115/65 at 1409 GMT according to Reuters data, up from 1.5140-1.5180 quoted on Thursday.
Kofi Pianim of Standard Bank said that Thursday's budget reading in parliament had given the cedi a significant boost.
"We are seeing some appreciation due to some offshore selling (of the dollar) in response to yesterday's budget reading with respect to the initial underestimated growth," said Pianim.
He was referring to the announcement by Finance Minister Kwabena Duffuor that the economy was expected to grow at 14.4 percent in 2011, up from a previous forecast of 12.3.
"We expect this trend to continue up until the auction," Pianim said.
Jacob Brobbey of Barclay's Bank also said dollar sales by local corporations had driven the value of the cedi up, adding that he expected the cedi-dollar rate to tick up towards 1.5100 or higher appreciate in the lead up to the July 28 auction.
"For now I expect that the next support level to be 1.5100 in the coming weeks and possibly higher," Brobbey said.
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