Shilling weakens on dollar demand from various sectors
19 August 2015, 21:32
Nairobi - The Kenyan shilling weakened on Wednesday on dollar demand from
various sectors but was expected to remain a range through the week,
At 0730 GMT, commercial banks posted the shilling at 103.20/103.30 per dollar, from Tuesday's close of 103.10/20 per dollar.
"It's everyone looking for dollars," said a trader at a commercial bank.
Typically, dollar demand comes from the energy, telecommunications and manufacturing sectors.
The trader said he expected the local currency to
remain in the 102.75-103.50 range through the week but the shilling
could weaken further next week as businesses begin buying dollars to
meet their regular end-of-month obligations.
Traders say the shilling was expected to remain under pressure, hurt by a wide current account deficit and scarce tourism receipts due to dwindling visitor numbers following a spate of attacks by Somali Islamists.
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