By Standard reporter
The Shilling remained steady yesterday, but traders said it remained vulnerable to importers and offshore investors taking profit from this year’s shares rally. Commercial banks quoted the shilling at Sh85.00/20 to the dollar, barely changed from Wednesday’s close of Sh85.10/20.
“The shilling might weaken gradually towards Sh85.50 in coming days. We expect some importer dollar demand and offshore buyers,” said John Muli, a trader at African Banking Corporation.
The Nairobi bourse main NSE-20 share index has gained 20 per cent so far this year. This is as foreign investors faced with minimal returns on investments in developed markets buy local stocks. A peaceful General Election on March 4th also helped lift sentiment.
Some traders said the Central Bank of Kenya may offer support to the Shilling, by mopping up liquidity and the occasional sale of dollars directly to banks, to maintain stability in the market.
The bank sold dollars to banks last week for the first time in four months. It sold an unspecified amount of dollars on May 29, after the currency fell 1.7 per cent over five sessions to hit an eight-week low of Sh85.25/45. —Reuters
