Kenyan shilling stable held by rising debt yields
12 August 2013, 15:13
Nairobi - The Kenyan shilling held steady on Monday, supported by rising government debt yields which could help the local currency firm later in the week.
Commercial banks quoted the shilling at 87.35/55 per dollar at 0814 GMT, unchanged from Thursday's close of 87.30/50. Kenyan markets were closed on Friday for a national holiday.
The weighted average yield on Kenya's 182- and 364-day Treasury bills rose for the seventh straight week at auction on Wednesday, while the 91-day T-bill jumped to 10.406 percent on Thursday from 8.754 percent at previous sale.
"With the T-bill rates shooting up, that could become supportive for the shilling going forward," said Duncan Kinuthia, head of trading at Commercial Bank of Africa.
The shilling, which has fallen about 1.5 percent this year, has been stuck in a range of 87.25-87.55 for two weeks, largely due to tight liquidity in the money markets.
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