Wednesday, 06 June 2012 00:33
NAIROBI: The Kenyan shilling firmed slightly against the dollar on Tuesday after the government received $240 million from international lenders, and traders said it could gain further after the central bank held interest rates for a sixth month.
The shilling finished the day at 85.80/86.00 per dollar, slightly up from Monday's close of 85.90/86.10. The central bank's rate decision was announced after markets had closed.
Policymakers left the benchmark interest rate unchanged at 18 percent for a sixth month in a row, saying potential risks to inflation and the stability of the shilling remained.
"It was expected in the market that they would hold the rate because they are still worried about the shilling which could come under attack from external pressure like the euro zone crisis," said Ignatius Chicha, head of markets at Citi Kenya.
The decision to hold the policy rate, which was accompanied by a pledged to step up open market ...