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.


Kenyan shilling seen pressured ahead of rate meeting

29 August 2013, 15:09

Nairobi - The Kenyan shilling held steady on Thursday as the market looked to a September 3 monetary policy meeting for direction, but traders said the threat of foreign military intervention in Syria might begin dictating the local market.

"Guarded trading is likely to take over ... on the added thrust of the Syrian standoff," said Commercial Bank of Africa in a daily note.

The shilling was posted at 87.60/70 per dollar at 0958 GMT, barely changed from Wednesday's close of 87.50/70.

A Reuters survey of 16 economists taken over the past week forecast Kenyan interest rates would stay on hold until at least the end of this year to counter rising inflation and an under-pressure currency.

The same forecast was made for interest rates in Ghana and Nigeria.

Kenya held its benchmark lending rate at 8.50 percent in July, with the central bank saying it wanted to allow more time for earlier cuts to filter through the economy.

Kenyan inflation KECPI=ECI rose to 6.02 percent in the year to July from 4.91 percent in June, hitting its highest level for a year and edging closer to the upper limit of the government's preferred band of 3-7 percent.

"End-month demand is over now. Everyone is looking to see what the Monetary Policy Committee will say. From there we can have a clear perspective," said Robert Gatobu, a trader at Bank of Africa.

But Gatobu acknowledged a foreign attack on Syrian soil would alter the market dynamic.

"Everyone thinks guys will move to the dollar as a safe haven if they attack Syria ... that will eventually hurt the shilling."

- Reuters



Read News24’s Comments Policy

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

Read more from our Users

Submitted by
Wilon Ochieng
Labour Party to dump both Jubilee...

The Labour Party of Kenya is likely to avoid supportoing both the CORD and Jubilee factions during the 2017 General Elections. Read more...

Submitted by
William Korir
Ukambani MP quits Jubilee, to run...

An Ukambani MP has quit the Jubilee Party, citing voter apathy as his reason behind leaving the ruling coalition. Read more...

Submitted by
Victor Tinto
Government launches probe into Po...

The government has launched an inquiry into the circumstances that could have led to two National Police Service helicopter accidents in August and September this year. Read more...

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...