Shilling firm on subdued corporate demand

The shilling was steady in early trading yesterday, helped by subdued corporate demand for dollars. “In the absence of dollar demand, the shilling looks well supported,” said one trader. The shilling was quoted at 102.20/40, almost unchanged on Wednesday’s close of 102.25/35.

The Central Bank has intervened several times this week to sell dollars, keeping the currency from reaching the 102.50 mark, traders said. The Central Bank does not usually comment on any intervention or if it is defending any level. The shilling has been under pressure this year over global dollar strength, and a widening trade gap and budget deficit.