NAIROBI: The Kenyan shilling lost ground on Wednesday due to dollar demand at the end of the month from companies looking to pay their bills, and traders said the currency was likely to stay under pressure in coming days.
At 0800 GMT, commercial banks posted the shilling at 87.75/85 per dollar, compared with 87.40/60 at Wednesday's close.
"We attribute this weakness to end-of-month demand from the manufacturing (sector) and importers," said Andlip Nazir, senior trader at I&M Bank.
The shilling has lost about 1.7 percent against the dollar this year and in recent weeks has come under renewed pressure due to declining receipts from the tourism sector, a key foreign exchange earner that is reeling from a spate of militant attacks.
Nazir said the shilling could receive support from the central bank if it nears the 88 level. Over the past year the bank has frequently mopped up excess liquidity to support the local currency.
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