NAIROBI: The Kenyan shilling opened slightly stronger on Monday, helped by banks trimming their dollar positions amid slack corporate demand for the US currency ahead of President-elect Uhuru Kenyatta's inauguration.
The shilling has rallied 1.4 percent since the March 4 vote, which passed off peacefully, avoiding a re-run of the violence that followed a contested election result five years ago.
Market players said corporate clients might be holding back from buying dollars in anticipation of a further strengthening of the local currency.
"Positive sentiment is still in the market ahead of the inauguration," said Julius Kiriinya, a trader at African Banking Corporation.
"Corporates might be waiting for the shilling to firm further before they come in buying dollars."
Kenyatta, the country's richest man and son of its founding President Jomo Kenyatta, will be sworn in on Tuesday when markets will be closed for a national holiday.
His win was disputed by defeated candidate Raila Odinga who took his challenge to the Supreme Court and not the streets as he did when he lost another vote in 2007.
The so-far smooth handover of power is seen providing a fillip to investment in Kenya, the region's economic powerhouse, although the outlook is clouded by Kenyatta's looming trial for alleged crimes against humanity at the International Criminal Court.
Traders say technical analysis suggests the shilling could strengthen below its 84.50 resistance level and target 84.00 in coming sessions.
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