NAIROBI: The Kenyan shilling was stable against the dollar on Wednesday and traders said it was likely to edge up in the days ahead after jitters over political tensions subsided.
At 0750 GMT, commercial banks posted the shilling at 87.80/90 per dollar, unchanged from the previous day's close.
"Expectations are that a very gradual strengthening of the shilling will happen," said a senior trader with a leading commercial bank.
The shilling is expected to consolidate within its recent range of 87.20-88.00 after demand for dollars ahead of an opposition rally on Monday threatened to push it below the 88.00 level. The rally, intended to pressure the government into talks about various grievances, passed off peacefully.
Also reinforcing the exchange rate stability was a decision of the central bank on Tuesday to leave its key lending rate unchanged at 8.50 percent, traders said.
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