Kenya shilling to firm as banks sell dollars

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The Kenya shilling will strengthen, helped by commercial banks selling off dollars, tight liquidity in money markets and political tensions easing after the opposition said it would challenge the August 8 presidential election results in court.

Commercial banks quoted the shilling at 103.25/45, compared with last Thursday’s close of 103.90/104.10. “I still think that it may firm.

People are unwinding their long positions pre-election and also due to money market liquidity,” said a senior trader at one commercial bank.

 The shilling will also get a lift after opposition leader Raila Odinga said he would contest the election outcome in court, calming concerns that further street protests might bring widespread violence.

“That has eased tension,” said the trader.