NAIROBI: The Kenyan shilling weakened to a six-week low early on Wednesday due to increased demand for dollars by importers and other corporate clients to meet end-of-month commitments.
At 0728 GMT, commercial banks quoted the shilling down 0.4 percent at 84.45/65 per dollar, off an intraday low of 84.50/70 that was its lowest since April 10.
"As we approach end-month, demand (for dollars) from corporates has increased, with no significant inflows to counter it," said Duncan Kinuthia, head of trading at Commercial Bank of Africa.
"There is ...a bit of short covering... The shilling may remain on the back foot for now."
Traders said shilling support was at 84.50 after the currency weakened though the key 84.00 level in the previous session.
They said the shilling dip could also be a delayed reaction to a 100 basis point cut in base interest rates on May 7, which had given commercial banks room to ease their lending rates.
"Some weakening on the shilling was expected sooner or later on the back of lower interest rates after the ...cut," said a trader at one commercial bank.
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