NAIROBI: The Kenyan shilling was steady on Monday but traders said it could firm in coming days on dollar inflows from foreign investors bidding for a Treasury bond later this week.
At 0744 GMT, commercial banks quoted the shilling at 87.70/90 to the dollar, compared with Friday's close of 87.75/85.
"It's likely there could be some dollar inflows into the market," said Nahashon Mungai, trader at KCB Bank Group, in reference to the two-year bond reopening.
The central bank will auction the bond worth 10 billion shillings on Wednesday.
Traders said they forecast the shilling would trade in the 87.50 to 88.00 range in coming days, but would come under pressure later in the month when importers usually seek dollars.
"We hold the view that 88.00 levels is still a very strong psychological level to break," said Bank of Africa in a report. "We expect the shilling to touch 88.00 before we see a substantive correction on the gaining side."
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