Struggling Shilling remains steady versus Dollar
04 September 2015, 21:30
Nairobi - Kenya's shilling was little changed against the dollar on Friday, but
was seen under pressure due to demand from importers and a general
weakening of emerging currencies against the dollar.
At 0723 GMT, commercial banks quoted the shilling at
105.00/105.20 per dollar, barely changed from 104.95/105.15 on Thursday.
The shilling has been edging closer to its all time low of about 107 to
the dollar, set in October 2011.
One trader at a Nairobi-based commercial bank said the
shilling would remain vulnerable to further losses as emerging market
"We are also seeing a bit of buying from importers, who
are bringing forward their orders as they are looking at the market and
thinking 'shilling may weaken'," said the trader.
The Kenyan currency, down 16 percent this year, has
come under pressure from a broad rally in the dollar, Kenya's high
current account deficit and poor tourism inflows after attacks by
Somalia's al Shabaab insurgents.
Kenya's central bank has in the past few months
periodically intervened in the market to support the currency by selling
dollars. It also regularly mops up excess liquidity.
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