Shilling slips after Mpeketoni attack
16 June 2014, 12:16
Nairobi - The Kenyan shilling edged down against
the dollar on Monday after gunmen killed 48 people in an attack on the coastal
town of Mpeketoni.
Commercial banks posted the shilling at
87.95/88.05 early in the session, before it took back those losses to trade at
87.85/95, where it had closed on Friday.
"There was a knee-jerk reaction to what I
think is the Mpeketoni attack," said Chris Muiga, a trader at National
The assault at Mpeketoni was the latest in a
string of gun and bomb attacks that have hurt Kenya's vital tourist business
and which have been blamed on Somalia's al Shabaab militant group. Western
nations have issued travel warnings in the wake of the assaults.
Traders said the shilling was likely to remain
trapped in a range of 87.50-88.20 per dollar over the next few days, pending
news that could offer it a clear direction.
Such news could come from information on the
level of demand the country will get from its debut Eurobond for $1.5 billion,
which is being marketed abroad, traders said.