Economy

Kenyan shilling eases on energy, telecoms dollar demand

Date: Jul 9, 2015

Kenya's shilling weakened on Thursday amid demand for dollars from energy and telecommunications companies, though inflows from non-governmental organisations offered it some support, traders said.

At 0836 GMT, commercial banks quoted the shilling at100.50/70 to the dollar, compared with Wednesday's close of100.35/45.   

"It's demand and supply. Supply is mostly from NGOs; demand is the usual culprits - energy, telecom and manufacturers," said a senior trader at one commercial bank said.  

 The trader said the shilling touched 100.80/90 earlier in the session, a 3 1/2-year low last seen in October 2011, before re gaining some ground.   

The shilling has been under sustained pressure heading towards a record low around 107, caused by dwindling tourism revenues, a widening current account deficit and a stronger dollar on global markets.   

Technical analysis of the 14-day and 50-day weighted moving averages suggested the shilling would stay on a weakening trend in the near term.

--reuters--

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