NAIROBI: The Kenyan shilling was steady on Tuesday and should hold in a tight range, with demand for the dollar from the energy sector counterbalanced by exporters selling the US currency, traders said.
At 0736 GMT, commercial banks quoted the shilling at 86.85/87.05 to the dollar, compared with Monday's close of 86.95/87.05.
"There is still demand in the market from the energy and corporate sectors. For now it will be range-bound. I think exporters are happy at these levels," said Sameer Lagadia, head of trading at Diamond Trust Bank.
Traders said those expected to return to the market to sell dollars included non-governmental organisations and agricultural sector exporters.
"The (dollar) supply side continues to be constrained, but we expect this to normalise as exporters come back into the market - these are the NGOs and horticultural guys - after the holidays," a senior trader at one commercial bank said.
Traders said they expected the shilling to trade in the 86.50 to 87.75 range.
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