Tuesday, 17 November 2015 18:22
NAIROBI: Kenya’s shilling strengthened slightly in early trading on Tuesday ahead of the central bank’s rate-setting meeting later in the day, traders said.
By 0715 GMT, the shilling was quoted at 102.15/25 to the dollar, compared to Monday’s close of 102.20/30.
“The market is in a very tight range. Dollar demand is muted and supply is well-matched,” said one trader at a commercial bank. The trader said the local currency was likely to stay in the 102.00-102.40 range throughout the week.
A second trader said the currency’s direction would depend on what the central bank decides later on Tuesday.
“We have an eye on (the rate decision), but I think the consensus is they will maintain the existing rate,” the trader said, adding that would keep the shilling stable.
At its last meeting in September, the central bank held its lending rate at 11.50 percent, saying inflation had fallen towards its medium-term target.
The shilling has been under pressure this year, partly because of global dollar strength and partly because of domestic issues, such as a widening trade gap and budget deficit.
