Kenyan shilling holds steady as Central Bank action eyed

The shilling was little changed yesterday in a cautious market as traders anticipated possible Central Bank action to prevent the currency from sliding 100 to the dollar. In early trade, commercial banks posted the shilling at 99.55/65, its lowest point since October 2011, barely changed from the previous day’s close of 99.50/60.

“The market is waiting to see if the Central Bank will intervene,” said a trader with a commercial bank. Traders said the Central Bank, which pumps dollars into the market whenever the shilling depreciates too rapidly, would not want the shilling to drop to 100.