Kenyan Shilling weakens yet again, seen as vulnerable
05 November 2015, 21:52
Nairobi - Kenya's shilling was a touch weaker
against the dollar on Thursday, with the local currency seen vulnerable
to further losses due to loosening liquidity following a sharp fall in
government debt yields.
At 0705 GMT, commercial banks quoted the shilling at 101.95/102.05.to
the dollar, slightly weaker on Wednesday close of 101.85/95.
are coming off, liquidity is improving, so we could see it see begging
to weaken towards 102.50 levels," said one Nairobi-based trader.
shilling, down about 12.7 percent against the dollar this year, had
firmed in recent weeks due to inflows of dollars from offshore investors
chasing high-yielding government debt.
But in Wednesday's auction the debt yields plummeted, even if they still remain at an elevated level.
yield on the 182-day bill fell to 16.492 percent from 21.028 percent
last week, while the yield on the 364-day bill dropped to 17.130 percent
from 21.212 percent. Traders say rates have dropped due to a $750
million syndicated loan the government secured recently.
In a sign
of increasing liquidity in the money markets, the weighted average
interbank lending rate fell to 10.12 percent on Wednesday from about
15.1 percent two weeks ago.
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