Kenyan shilling firms, more gains seen
18 February 2014, 16:12
Nairobi - The Kenyan shilling firmed on Tuesday and traders said they expected it to gain more ground on foreign investor appetite for a government bond sale this week and dollar inflows from tea exporters.
At 07:35 GMT commercial banks quoted the shilling at 86.15/35 to the dollar, 0.1% up on Monday's close of 86.30/40.
Kenya's central bank will auction on Wednesday a 15-year Treasury bond worth up to 10 billion shillings.
Shilling strength "could be on the back of the bond that is being auctioned and expected inflows from foreign participants," a senior trader at one commercial bank said.
"Again we see some tea money coming through, and on the demand side there is very little activity."
The shilling, which has gained 0.4% against the dollar this year, is expected to trade in the 86.00-86.80 range in coming days, traders said.