Shilling stuck in a tight range

The Shilling was stable against the dollar on Friday and traders said it was likely to trade in a tight range over the next few days.

At 0755 GMT, commercial banks posted the Shilling at 91.40/50 per dollar, unchanged from the previous day’s close. The currency firmed this week, buoyed by a drop in importer demand for dollars and hard currency inflows chasing high yields on local bonds and fuelling a rally in shares that has sent the blue chip index to its highest since 2007.

A Treasury bond auction of a two-year and re-opened ten-year notes worth a total Sh25 billion was oversubscribed, with bids totalling Sh51 billion.