Shilling weakens on energy demand

The shilling was weaker Friday on rising dollar demand from the energy sector, and traders were wary of a possible intervention by the central bank as the local currency lost ground. At 0815 GMT, commercial banks quoted the shilling at 98.40/60 to the dollar, from Thursday’s close of 98.10/30.

“Today it’s still weakening. For the past two days there’s been quite some demand from the energy sector and oil importers, which is pushing it up (weaker),” a senior trader at one bank said. Traders said the next level they were watching was 98.50 which they feel could prompt the sale of dollars by the central bank to keep it from weakening further. —Reuters