NAIROBI: The Kenyan shilling was little changed on Thursday but traders said they expected it to strengthen in the days ahead, thanks to foreign investors buying local shares.
At 0806 GMT, commercial banks quoted the shilling at 86.70/80 to the dollar, compared with Wednesday's close of 86.75/85.
Traders said the shilling was expected to get support from foreign investors bringing in money to invest in stocks on the Nairobi Securities Exchange (NSE).
"There have been good inflows from the foreign investors in the stock market ... this is driving down the (dollar) price because inflows remain higher than outflows. As long as they are net buyers in the (Nairobi Stock Exchange) that's a good sign," Sheikh Mehran, senior trader at Kenya Commercial Bank, said.
Traders said the shilling would also get a lift from exporters selling the US currency.
"It has come down a bit, Kenya shilling has strengthened against the dollar. There were inflows from agriculture, especially tea. And customer demand has reduced a bit," John Muli, trader at African Banking Corporation, said.
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