Shilling holds ground as demand for dollars eases

The Shilling held steady yesterday as pressure on the currency eased along with falling demand for dollars. Commercial banks posted the unit at Sh95.85/96.05, unchanged from Friday’s closing rate.

The shilling weakened to its lowest point since November 2011 earlier this month, driven by demand for dollars from importers and local firms looking to pay dividends to shareholders abroad.

“Demand (for dollars) has fizzled out,” said a trader at a commercial bank.

The shilling has also got some support in recent days from firms selling dollars to meet their tax obligations in the local currency this week, traders said.