Kenyan Shilling strengthens against dollar, seen in a range
27 January 2014, 13:41
Nairobi - The Kenyan shilling firmed slightly against the dollar on Monday but was expected to stay in a tight range as end-of-month dollar demand offsets foreign investor inflows that have been strengthening the local currency.
At 0800 GMT, commercial banks quoted the shilling at 85.70/80 to the dollar, compared with Friday's close of 85.80/90.
Traders said the shilling was likely to be stuck in a range between 85.50-86 as corporates buy dollars to settle their bills at the end of the month.
"The shilling will play a bit on that range, pulling and tugging with end-month demand coming in and putting a cap on the strengthening shilling," said Eric Gathecha, a trader at I&M Bank.
The shilling had been strengthening last week, helped by foreign investors' appetite for government bonds and Treasury bills. The shilling has gained about 1.3 percent since the start of 2014.
Technical analysis of the 14-day and 50-day weighted moving averages show the shilling is expected to maintain a strengthening bias in the near term.