Kenya shilling stable versus dollar, liquidity ryed
03 February 2014, 13:34
Nairobi - The Kenyan shilling held steady against the dollar on Monday, shielded from the worst of the turmoil in other frontier markets because of its limited exposure to foreign investors.
At 0750 GMT, commercial banks posted the currency of east Africa's biggest economy at 86.45/55 per dollar, similar to Friday's close.
"The market was tight last week so if liquidity improves, that could have an impact," said Chris Muiga, senior trader at National Bank.
The shilling has escaped the worst of the emerging and frontier market currency volatility in the last two weeks, caused by stimulus tapering in the United States, mainly because Kenya's debt market is driven by local investors rather than foreigners.
"Kenya has relatively less exposure to global yield hunters so the currency is cushioned," said a trader at a commercial bank.
The weighted average overnight interest rate inched up to 11.8514 percent on Friday, from 11.7218 the previous day.