NAIROBI: The Kenyan shilling firmed against the dollar on Wednesday on the back of dollar inflows from charity organisations and tea exporters.
At 0705 GMT, commercial banks posted the shilling at 86.05/15, after corporate demand pushed it off its intra-day high of 85.90/86.00. The shilling had closed on Tuesday at 86.10/30.
"We should continue to strengthen on better investor flows from offshore combined with lower demand (for dollars)," said a trader with a leading commercial bank.
Tea exporters and non-governmental organisations were also converting their dollars into shillings, offering further support to the local currency, the trader added.
The central bank's decision to hold its benchmark lending rate at 8.50 percent in the previous session was seen as neutral, because it was largely expected, traders said.
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