NAIROBI: The Kenyan shilling edged down against the dollar early on Monday and traders said it could weaken further on central bank cash injections.
At 0720 GMT, commercial banks posted the shilling at 85.65/75 per dollar, weaker than Friday's closing rate of 85.50/70.
"It could weaken some more," said Chris Muiga, a trader at National Bank of Kenya, citing the central bank's moves to inject cash into liquidity-starved money markets through reverse repurchase agreements (repos).
The bank pumped in billions of shillings last week after the overnight borrowing rate in the interbank market kept on creeping upwards. The rate rose to 12.8799 percent on Friday from 12.7006 percent previously.
Technical charts showed the shilling's resistance at 85.85-86.10, with failure to break that level, pointing to a move higher to 84.50 per dollar.
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