Shilling dips, hurt by dollar demand

The shilling stumbled, hit by demand for dollars from importers and concerns about the euro zone crisis, but with sky-high interbank rates seen generating more gains for the local currency soon. Squaring of short positions ahead of the weekend, when commercial banks usually align their books, also drove the dollar higher.

Traders said the shilling getting back up to the key Sh90.00 level had brought in some importers, who perceived that level as attractive and bought dollars to cover their obligations at the end of the month.