Shilling little changed, traders keep eye on CBK

Nairobi; Kenya: The Shilling was little changed on Friday, with traders saying they expected it to remain under pressure due to underlying importer demand, barring any action by the central bank.

At 0740 GMT, commercial banks quoted the shilling at 89.25/35 to the dollar, compared with Thursday’s close of 89.20/45.

Traders said they have been trading cautiously every time the shilling approached the 89.50 level. They also said they are watching for any action by the Central Bank of Kenya, which has in the past sold dollars when it approached 89.50.

 “Fundamentally, the shilling is still poised to weaken towards 89.50 levels,” said Martin Runo, a senior trader at Chase Bank. “But guys are keenly watching CBK, because we know they are watching the market closely to come to tame the weakening in case of any sharp dips.”

 The bank most recently was in the market to sell dollars on September 19, a move it has in the past said was intended to smooth out any volatility for the shilling. —Reuters