Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Kenya shilling weakens vs the dollar, cbank eyed

03 January 2012, 12:50

 Nairobi - The Kenyan shilling lost ground against the dollar in the first trading day of 2012 on thin corporate and interbank demand for the U.S. currency,and traders expected the central bank to intervene to stem a further slide of the local currency.     
    Traders expect the shilling to weaken, however, as players in the money market come back on line after the end of year holiday. Markets were closed on Monday.    
    At 0730 GMT, commercial banks posted the shilling at 85.10/30, weaker than Friday's close of 84.70/90.    
    "There is a bit of corporate and interbank demand but on very thin volumes," Dickson Magecha, a trader at Standard Chartered Bank said.     
    The central bank was in the market selling an unknown amount of dollars on Friday, the last trading day of 2011, which helped support the shilling.     
    Some traders said last week that the shilling would range between 84 and 87 to the dollar in January.     
    It looked headed for a range of 85.00-85.50 to the dollar on Tuesday, but traders also said the central bank was likely to step into the market to defend the local currency.     
    "We should brace for a weaker shilling as dollar demand improves in the course of the week," Solomon Alubala, head of trading at Cooperative Bank said.     
    Traders said the market was still tight, though the average interbank lending rate eased to 25 percent as of Friday, down from 26.8 percent the previous day.



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Wilwon Ochieng
Deputy Governor's ally found with...

The EACC has recovered KES 2 million in fake currency from a close ally of Deputy Governor for Tharaka Nithi Eliud Mati. Read more...

Submitted by
William Korir
Mudavadi given permission to join...

Musalia Mudavadi has been ghranted permission by his party to join the CORD Coalition. Read more...

Submitted by
Victor Tinto
EACC officers raid Deputy Governo...

EACC officers raided the home of a Deputy Governor as theft case continues in court. Read more...

Submitted by
Wilson Ochieng
New IEBC bosses to be named Novem...

New IEBC bosses will be named on November 30. Read more...

Submitted by
William Korir
DP Ruto has spoilt my name, activ...

DP William Ruto has spoilt my name, activist complains. Read more...

Submitted by
Wilson Ochieng
Apologise for attack on Auditor G...

Apologise for attack on Auditor General, President Uhuru Kenyatta is told by Kisumu Senator Anyang Nyong'o. Read more...