Kenyan shilling steady, outlook mixed
04 December 2013, 12:21
Nairobi - The Kenyan shilling was stable on Wednesday with traders weighing the likelihood of demand for dollars as businesses wind down for the holidays.
At 0648 GMT, commercial banks quoted the shilling at 86.55/75 to the dollar, compared with Tuesday's close of 86.65/75.
Bank of Africa said in its daily market report that demand and supply would remain matched towards the Christmas period, although the shilling might gain marginally as business needs for the U.S. currency ease off thereafter.
Any gains, however, could also be limited by increased demand for the U.S. currency from some businesses before they take a break.
"We might see a pick-up in demand late this week or early next week ahead of the festive season," said a senior trader at one commercial bank.
The shilling has come off a one-month low it neared in late November when it touched 87.10, and is still 0.6 percent weaker in the year to date.