Shilling slightly weaker against dollar, Central Bank action eyed

The shilling yesterday eased slightly against the US dollar in early trade, with traders expecting the central bank to sell dollars to prop up the currency if it weakens further.

When currency markets opened yesterday, commercial banks were posting the Shilling at 90.30 buying and 90.40 selling amid thin volumes, weaker than Friday's close of Sh90.25 buying and Sh90.35 selling against the dollar. "It's been quiet. But if the shilling goes up to 90.50, we expect the central bank to come in and intervene," said John Njenga, a trader at Commercial Bank of Africa.