Kenya shilling inches down, demand for dollars eyed
17 January 2014, 12:29
Nairobi - The Kenyan shilling edged down on Friday within its recent tight range and traders said the level of corporate demand for dollars would determine its direction.
At 0740 GMT, commercial banks posted the shilling at 85.90/86.00 per dollar, slightly down from Thursday's closing rate of 85.70/90.
Traders said the shilling was well supported by good dollar inflows into local financial markets from offshore investors and conversions by farm sector exporters and non-governmental organisations.
"Importers are standing on the sides and buying on dips so we will get direction when demand increases," said a trader with a leading commercial bank.
The shilling was expected to trade within a narrow band of 85.70-86.50 over the next several days with increased liquidity in the money markets making it hard for it to break the resistance level.
Over the next few weeks, the currency could firm further due to inflows from the sale of the country's debut Eurobond for up to $2 billion. Marketing is planned for later this month or February.