NAIROBI: The Kenyan shilling was steady on Monday and traders said they expected it to stay in a narrow band against the dollar due to tight liquidity in the money markets.
At 0742 GMT, commercial banks quoted the shilling at 87.80/90 to the dollar, unchanged from Friday's close.
Traders said tight shilling liquidity would balance out any demand for the US currency.
"With liquidity still expected to be tight this week attributed to minimal government spending, the dollar is still expected to remain range bound," Bank of Africa said in its market report.
The weighted average overnight lending rate rose to 10.1280 percent on Friday from 10.0951 percent a day earlier.
Traders said the liquidity could start improving in coming days, especially due to maturing government securities.
They predicted the shilling was likely to trade in the 87.60 to 88.20 range in coming days.
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