NAIROBI: The Kenyan shilling stayed at a three-year low on Friday and traders said they expected it to trade in a tight range and come under more pressure from importers' demand for dollars in the days ahead.
At 0755 GMT, commercial banks quoted the shilling at 91.50/60 to the dollar, compared with Thursday's close of 91.45/55. It hit the low of 91.50/60 earlier on Thursday.
The shilling lost ground steadily last year, partly due to a downturn in tourism following attacks by Islamist al Shabaab militants in the country.
"We are still a bit bearish on the shilling because nothing
has really changed," a trader at one commercial bank said.
Traders said they forecast the shilling to trade in the 91.30 to 91.50 range in the near future.
Technical analysis of the 14-day and 50-day weighted moving averages show the shilling was expected to maintain a weakening trend in the near term.
A trader at another commercial bank said the shilling was expected to get a brief reprieve as companies pay their taxes, which meant more demand for the shilling.
"I think the shilling should be supported around these levels, due to reduced importer demand as they pay taxes," the second trader said.
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