Economy

Kenyan shilling hits new low on end-month dollar demand

Date: Apr 24, 2015

The Kenyan shilling weakened to a new low since November 2011 on Friday as corporate demand for dollars to meet end-month payment deadlines picked up.

Traders said the shilling was unlikely to stabilise unless the central bank offered support by selling dollars, as it has in the past.    By 0730 GMT, the shilling was quoted at 94.10/20 to the dollar, after closing at 94.00/10 on Thursday.    
"This is fundamental weakness. What only slows it down is central bank intervention," said Sheikh Mehran, head of trading at I&M Bank, citing "expectations of further weakness to 95unless we see some intervention."    
He said the shilling could stabilise around the 95-level.    
"It being a Friday, a normal end of week covering is going on from corporates, and also as we are approaching the end of the month, there has been some corporate demand," Mehran said.    
The shilling has been hit by a slowdown in foreign exchange revenues from tourism after a spate of militant attacks that’s cared visitors away. Meanwhile, the economy has still picked up pace, pushing up dollar demand to pay for imports, traders said.                   
--reuters--

Comments

comments powered by Disqus

Web Content Viewer (JSR 286)

Actions
Loading...
Complementary Content
CLOSE

Your Name:*

Your Email:*

Your Message:*

Enter Captcha:*